DAX Edgy As Retail Sales Data Triggers Growth Concerns

The German DAX index opened in positive territory but soon faltered as data showed the retail sales for February came in below expectations. Retail sales in February rose 0.3 percent on a monthly basis, but came short of market expectations of a 0.5 percent increase, triggering growth concerns.

The fallout of a likely disruption in gas supplies from Russia also impacted sentiment. Germany had on Wednesday, activated an emergency plan to secure gas supplies in the event of a disruption in Russian supplies.

Data also showed that the unemployment rate (seasonally adjusted) in March continued at 5 percent, helped by a spring rebound and the easing of pandemic related restrictions.

The forty-scrip DAX index is currently trading at 14,586.23 versus the previous close of 14,600.15. The day’s trading has been within the range of 14,575.12 and 14,735.95.

Utilities business RWE is the top gainer with a 3.3 percent rally. Deutsche Bank and drug manufacturer Bayer have rallied more than 2 percent.

Meal kits maker HelloFresh declined more than 2.5 percent. Online food delivery service Delivery Hero shed 2.2 percent. Semiconductor maker Infineon Technologies dropped a little more than 2 percent.

Specialty chemicals business Linde is the most active scrip with a turnover of 0.9 million euros.

The EURUSD pair hovered around 1.1108, around 0.43 percent lower than the closing level at Wednesday, as the Dollar Index added 0.34 percent to touch 98.13, versus 97.79 on Wednesday.

The ten-year bond yield has decreased by 12 percent to 0.5765 versus 0.6570 percent on Wednesday.