German DAX Index Climbs On Mixed Economic Signals, Edging 0.4% Higher Mid-Session

After an uncertain opening, the DAX benchmark demonstrated resilience Monday, advancing to 24,616.94 points by midday, representing a gain of 101.21 points or approximately 0.41% from its early session low of 24,339.16. The performance reflected investors’ cautious approach to market movements, with sentiment tempered by anticipation of the European Central Bank’s upcoming monetary policy decisions and lingering geopolitical tensions stemming from escalating Iran-U.S. relations.

DAX Performance Driven By Selective Buying Interest

Within the DAX composition, individual stocks displayed divergent trends reflecting broader sectoral dynamics. Notable gainers included Adidas, which surged nearly 2.3%, while Hannover Rueck advanced 2%. Deutsche Telekom and Allianz strengthened by 1.85% and 1.7% respectively. Fresenius moved up 1.4%, with Gea Group, Munich RE, SAP, Henkel, and Commerzbank each posting gains between 1% and 1.15%. E.ON, Fresenius Medical Care, Heidelberg Materials, Beiersdorf, and Mercedes-Benz registered more modest increases. Conversely, Rheinmetall, Brenntag, Infineon Technologies, and Siemens Energy experienced declines ranging from 1% to 1.7%. Symrise dipped 0.7%, while Deutsche Bank, Bayer, and Volkswagen showed marginal losses. Commodity-related equities faced sustained pressure from weakness in metal and energy prices.

Economic Data Supports Moderate Optimism

German retail sales momentum improved in December, with official Destats figures showing a 0.1% monthly increase following November’s 0.5% contraction. Year-over-year, retail sales expanded 1.5% compared to 1.3% in the previous month, meeting forecasted expectations. This recovery in consumer spending provided some support to DAX valuations during the session.

Manufacturing Sector Signals Continued Contraction

Euro area manufacturing activity contracted at a slower pace in January according to final data from S&P Global, with the HCOB manufacturing Purchasing Managers’ Index rising to 49.5 from December’s nine-month low of 48.8. Although the reading improved from the initial flash estimate of 49.4, the index remained below the 50-point threshold indicating sectoral contraction for a third consecutive month. Germany’s manufacturing sector specifically maintained its downward trajectory, extending contraction through its 43rd consecutive month in January. However, the country’s final factory PMI climbed to 49.1 in January, a three-month high from December’s 47.0, as output returned to growth following December’s brief production decline.