DAX Index: German PMI Bolsters ECB Rate Cut Expectations
DAX Index Overview
On Monday, September 23, the DAX advanced by 0.68%, partially reversing a 1.49% loss from the previous session, closing at 18,847.
Key DAX Market Movers
- Online retailer Zalando SE rallied 3.17%,
- Siemens Energy AG gained 2.88% on rising bets on a Q4 2024 ECB rate cut.
- Demand for auto stocks bolstered as BMW advanced by 2.44%, with Volkswagen and Mercedes-Benz Group gaining 2.14% and 2.00%, respectively.
- However, Commerzbank tumbled 5.68% amid government statements on a UniCredit bid.
German PMI and ECB Rate Speculations
On September 23, German private sector PMI numbers fueled expectations for a Q4 2024 ECB rate cut. The HCOB Manufacturing PMI declined to a 12-month low, indicating weakening demand. The HCOB Services PMI also dipped, indicating a contracting services sector.
Expert Commentary on German Economy
Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented on the PMI data, stating, "The slump in manufacturing is spilling over into Germany's services sector, with a continuous decline in activity growth. Outlook remains grim for services."
Investor Focus on Ifo Business Climate
Investors are eyeing the upcoming Ifo Business Climate Index, expected to drop, reflecting a pessimistic mood for manufacturers. A decline could pressure the ECB to consider rate cuts to boost the German economy.
US and Global Market Trends
Meanwhile, the US markets are showing positive trends with key indices advancing. A focus on US consumer confidence is also significant as better-than-expected numbers may further influence the DAX toward 19,000.
Near-Term DAX Forecast
The DAX's near-term trends will hinge on upcoming economic indicators and central bank communications. Expectations for positive data from the US could drive the DAX higher, while disappointing figures could create downward pressure.
Investors are urged to monitor the interplay of economic indicators, as futures markets indicate a mixed session ahead.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.