German equity markets experienced gains on Thursday, with the DAX index closing at 34,378 points – a rise of 0.8 percent compared to the previous day’s close. The index steadily built on a positive start throughout the trading session.
Investor focus remained firmly on US inflation data. Producer prices in the United States increased by 0.9 percent last month, exceeding expectations and showing a 3.3 percent increase year-on-year. Market analysts suggest this development has likely diminished expectations of near-term interest rate cuts by the Federal Reserve, limiting the central bank’s maneuvering room in the foreseeable future.
The impact of recently imposed tariffs and the evolving economic landscape are key factors under observation. While acknowledging these variables, analysts note continued robustness in the US labor market, with initial unemployment claims remaining within expected ranges. Precipitous action by the Federal Reserve could, therefore, prove counterproductive at this juncture.
Within the Frankfurt Stock Exchange, shares of Rheinmetall, Airbus and Allianz led the gainers as the trading day neared its close. RWE shares, conversely, lagged behind.
Energy markets displayed contrasting movements. The price of natural gas decreased by 1 percent to 32 euros per megawatt-hour (MWh) for September delivery. This price level, if sustained, suggests a consumer price of approximately eight to ten cents per kilowatt-hour (kWh), inclusive of additional costs and taxes.
Crude oil prices, however, increased significantly. Brent crude futures traded at $66.54 per barrel in the late afternoon, representing a 1.4 percent increase, or 91 cents, compared to the previous session’s closing price.
The euro demonstrated weakness against the US dollar, trading at $1.1651, while the dollar was valued at 0.8583 euros.