DAX Rises 0.75% On Strong Industrial Production Data

(RTTNews) - German stocks are modestly higher on Monday thanks to data showing an increase in the nation's industrial production in July, and amid optimism about an interest rate cut by the Federal Reserve this month.

Investors are largely shrugging of survey results showing an unexpected drop in eurozone investor sentiment.

The focus is on the crucial confidence vote in France where the Prime Minister Francois Baurou is facing almost certain defeat.

The benchmark DAX was up 175.68 points or 0.74% at 23,767.31 a little while ago.

Adidas is rising about 2.75%. Commerzbank and Heidelberg Materials are up 2.7% and 2.6%, respectively.

Zalando is gaining nealry 2% and Infineon is up 1.85%. Siemens, Continental, RWE. Rheinmetall and Vonovia are up 1 to 1.5%.

E.On, Fresenius Medical Care, Henkel, Mercedes-Benz, Volkswagen, Deutsche Bank, BASF, BMW, Deutsche Boerse, SAP and Fresenius are up 0.5 to 1%.

Hannover Rueck, Porsche, Daimler Truck Holding, Beiersdorf, Munic RE, Bayer, Sartorius and Puma are down 0.3 to 1%.

Data from Destatis showed Germany's industrial production rose 1.3% month-on-month in July, following a 0.1% drop in June. A 9.5% growth in the manufacture of machinery and equipment contributed to the increase in industrial production in July.

A separate data showed Germany's foreign trade surplus decreased in July as exports fell faster than imports. Exports posted a monthly decrease of 0.6% in July, reversing a 1.1% recovery in June. Imports dropped slightly by 0.1% after rising 4.1% in a month ago.

Meanwhile, results of a survey showed investor morale in the euro zone plunged in September to its lowest level since April. The Sentix index for the region unexpectedly fell to -9.2 in September from -3.7 in August. The investor sentiment index was seen rising to -2.2 in September.