German stocks advanced on Tuesday, as investors awaited the outcome of a two-day policy meeting of the Federal Reserve starting today for cues on the central bank’s stance on a recent jump in inflation.
Closer home, Germany’s harmonized inflation accelerated for a third month in a row to its highest level in nearly three years and remained above the European Central Bank’s target of ‘below, but close to 2 percent’ in May, final data from Destatis confirmed.
The harmonized index of consumer prices rose 2.4 percent year-on-year in May, which was faster than the 2.1 percent increase in April. The rate was the highest since October 2018, when it was 2.6 percent.
The consumer price index rose 2.5 percent annually after a 2.0 percent increase in April. Headline inflation accelerated for a fifth month in a row and was the highest since September 2011.
The benchmark DAX jumped 89 points, or 0.6 percent, to 15,762 after closing 0.1 percent lower the previous day.
Lufthansa Group shares fell over 1 percent. The airline said it aims to achieve an Adjusted EBIT margin of at least 8 percent and an Adjusted ROCE, excluding cash of at least 10 percent in 2024.
DAX Edges Higher As Fed Meeting Gets Underway
2021-06-15 08:58:03
