DAX Modestly Higher As Investors Await U.S. Inflation Data

(RTTNews) - German stocks are up in positive territory Wednesday morning, with investors indulging in some selective buying ahead of U.S. consumer price inflation data, due later in the day. Optimism about another interest rate cut by the Federal Reserve is aiding sentiment.

The market is also digesting Fed Chair Jerome Powell's testimony before the Senate on Tuesday. Powell reitereated that the central bank does "not need to be in a hurry to adjust our policy stance."

Powell is set to appear before the House Financial Servicces Committee later in the day.

The benchmark DAX, which advanced to 22,126.84, pared some gains subsequently and was up 60.97 points or 0.28% at 22,095.10 a little while ago.

Among the gainers, Sartorius is gaining 2.3%. Bayer is up 2.1%, while BASF, Mercedes-Benz, Deutsche Bank, Brenntag, Vonovia, E.ON. and Deutsche Boerse are gaining 1 to 1.7%.

Volkswagan, Adidas, Symrise, RWE, Porsche, BMW, Deutsche Post and Infineon are up with modest gains.

Rheinmetall is down 1.4%. According to a filing by the company, it has secured a contract, estimated to be worth a double-digit million euro range, from Brazil-based aerospace company Embraer. The German arms maker will supply its C-390 flight simulators and Cargo Handling Station Trainer to the Royal Netherlands Air Force for its Embraer C-390 transport aircraft training.

The delivery is expected to be completed by 2026-end.Delivery of the order, valued at the double-digit million euro range, is slated for 2026-end.

Merck is down 1.6% and Siemens is lower by about 1.1%. Siemens Healthineers is declining 0.6%, while Daimler Truck Holding and Hannover Rueck are down marginally.

The yield on Germany's 10-year government bond rose to 2.452% before dropping a bit to 2.439% this morning.