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Frankfurt Stock Exchange Drops 0.12% Again on Profit-Taking
🇵🇾 Paraguay /Economy & Trade

Frankfurt Stock Exchange Drops 0.12% Again on Profit-Taking

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News From a news agency Context piece
  • The Frankfurt Stock Exchange's DAX 40 index closed down 0.12% on Thursday, driven by investors taking profits.
  • Lower-than-expected US inflation and jobless claims data eased fears of an imminent Federal Reserve interest rate hike.
  • Falling oil prices and positive results from renewable energy firm RWE also influenced market movements.

The Frankfurt Stock Exchange experienced a slight downturn on Thursday, with the DAX 40 index closing 0.12% lower at 26,299.74 points. This dip was largely attributed to investors opting to secure profits after a period of gains. The market sentiment was influenced by a combination of factors, including economic data from the United States and global energy market dynamics.

The DAX 40, the selective index of the Frankfurt Stock Exchange, lost 0.12% at the close, reaching 26,299.74 points.

— EFEThis quote provides the specific closing figure for the DAX 40 index, indicating the extent of the day's decline.

Key economic indicators from the U.S. provided a mixed picture but ultimately eased concerns about immediate interest rate hikes. Producer prices in the U.S. rose by 4.7% in July, a slowdown from June's 5.5% and below forecasts. Additionally, weekly jobless claims increased to 209,000, exceeding expectations and marking the first time above 200,000 in four weeks. These figures suggest a cooling economy, diminishing the likelihood of the Federal Reserve raising interest rates at its September meeting.

Producer prices rose in the United States in July by 4.7%, compared to 5.5% in June, their second consecutive slowdown, and higher than expected.

— EFEThis quote details the U.S. producer price inflation data, highlighting its slowdown and impact on market expectations.

The energy sector also saw significant movement. The price of oil dropped to around $87 per barrel, despite Iran's assertion that it would maintain the Strait of Hormuz open. Meanwhile, Saudi Arabia is reportedly forming an international naval force to ensure safe passage through the Red Sea, a move aimed at countering potential disruptions by Yemen's Houthi rebels, who are allied with Tehran.

Weekly applications for unemployment benefits rose in the North American country last week by 9,000, to 209,000 applications, more than expected and above 200,000 for the first time in four weeks.

— EFEThis quote provides the U.S. weekly jobless claims figures, indicating an increase and its significance in the context of economic indicators.

Individual company performance varied. Tire manufacturer Continental was a strong performer, rising 2.9%. Renewable energy company RWE saw a 2.6% increase after releasing its first-half results. Conversely, major automotive companies like Mercedes-Benz Group (-1.6%), Volkswagen (-1.2%), Daimler Truck (-1%), and BMW (-0.9%) experienced declines. Chemical giant BASF also fell by 2.1%.

These data from the world's largest economy diminish expectations that the Fed will raise the price of money at its September meeting.

— EFEThis quote explains the market's interpretation of the U.S. economic data regarding the Federal Reserve's potential interest rate decisions.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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