German stocks eked out modest gains on Monday as optimism around earnings and economic reopening helped investors shrug off signs of slowing growth in China.
Risk appetite was also boosted after the U.S. Senate on Sunday finalized the text of its $1 trillion bipartisan infrastructure bill. The legislation will next be introduced to the Senate.
Closer home, Germany’s retail sales growth exceeded expectations in June as the relaxation of restrictions related to the pandemic supported consumer demand, data from Destatis revealed earlier today.
Retail sales grew 4.2 percent month-on-month in June, much faster than the economists’ forecast of 2 percent. Nonetheless, the latest increase was slower than the 4.6 percent growth logged in May.
Faster growth in new orders and employment boosted Germany’s manufacturing sector in July, a separate survey showed. IHS Markit’s final Purchasing Managers’ Index (PMI) for manufacturing rose to 65.9 in July from 65.1 in June.
The benchmark DAX edged up 57 points, or 0.4 percent, to 15,602 after losing 0.6 percent on Friday.
Automakers led a broad advance, with BMW, Daimler and Volkswagen all rising about 2 percent.
Vonovia gained half a percent. The company nudged up its offer for rival real estate company Deutsche Wohnen SE to about 19.1 billion euros ($22.7 billion).
Allianz slumped 6 percent. The insurer said earnings could be materially hurt by a U.S. Justice Department investigation into its Structured Alpha Funds that have been linked to investor losses during the coronavirus-related market downturn early last year.
Market Analysis
DAX Edges Higher On Economic Optimism
2021-08-02 09:04:41
