DAX Modestly Higher After Encouraging PMI Data

(RTTNews) - German stocks are modestly higher Friday morning, extending recent gains. Data showing unexpected jump in German manufacturing and services sector activity in the month of January, and encouraging euro area manufacturing activity report are aiding sentiment.

Investors are also reacting positively to U.S. President Donald Trump's remarks at the World Economic Forum in Davos, Switzerland. Trump's remarks have helped ease worries about tariffs a bit, and raised hopes of some monetary easing by the Fed.

The benchmark DAX was up 65.91 or about 0.31% at 21,483.84 a little while ago.

Automobile stocks are finding support amid slightly easing concerns about tariffs. BMW, Porsche and Mercedes-Benz are gaining 2.9 to 3.1%. Volkswagen is up 2% and Daimler Truck Holding is advancing 1%.

BASF is up nearly 3%. Deutsche Post, Rheinmetall, Infineon, HeidelbergCement, Zalando, Bayer, Siemens Energy and Merck are up 1 to 2%.

MTU Aero Engines is declining 4.7%. Qiagen is down 1.7% and Deutsche Telekom is lower by about 1%.

Data from S&P Global showed the HCOB Flash Germany Composite PMI unexpectedly jumped to a 7-month high of 50.1 in January 2025, the highest since June 2024, compared to 48 in December. The reading was expected to come in at 48.8.

The HCOB Germany Manufacturing PMI rose to an 8-month high of 44.1 in January 2025, up from 42.5 in December, while the Services PMI climbed to a six-month high of 52.5 in January, from 51.2 a month earlier.

The HCOB Eurozone Composite PMI rose to 50.2 in January of 2025 from 49.6 in the previous month. That was higher than the forecast for a 49.7 score. The HCOB Flash Eurozone Manufacturing PMI rose to 46.1 in January 2025 from 45.1 in December, while the Services PMI edged down to 51.4 in January, from 51.6 a month earlier.