Frankfurt's Stock Exchange - US data pushes up gains, curbing Dax's pace with SAP
The US interest rate cuts from earlier this year are finally in full effect by the end of it, with as much as six cuts made at the start. However, the central bank's hesitancy still persists due to lingering inflation, which has only recently started declining slowly.
The German DAX index, heavily influenced by software stocks, especially SAP, experienced a slight increase of 0.13% to 18,497 points. Despite this, it's remained some way off its mid-May record high of around 18,900 points and the coveted 19,000 point mark.
The MDax index for medium-sized companies showed a gain of 0.81%, closing at 26,805 points on Corpus Christi. The previous day's downturn was somewhat offset. The day before had seen a slight rise in German inflation, which left investors somewhat frustrated.
The outlook isn't looking particularly bright for Salesforce, with weak demand in their cloud business causing concern among investors. Cloud business is becoming increasingly crucial for SAP in Germany, which caused their shares to plummet by over four percent.
Share prices of Merck KGaA, the pharmaceutical and specialty chemicals company, fell more than two percent due to a lower sales forecast from their US counterpart Agilent Technologies.
On the brighter side, automotive stocks rose, particularly the papers of suppliers Continental and sports car maker Porsche AG, both gaining around two percent. At the top of the DAX were pharmaceutical and agricultural chemicals company Bayer's shares, with an impressive 4.2% increase.
The shares of truck manufacturer Traton rose a substantial 3.7% in the sub-index SDax following a buy recommendation from analysis house Pareto.
The Eurozone's EuroStoxx 50 rose 0.38% to 4,982 points. The indices in Paris and London also saw more significant gains. In New York, the Dow Jones Industrial Index saw a 0.9% drop at the European stock market close.
The euro strengthened against the dollar, with a value of 1.0839 dollars last seen. The European Central Bank had set the reference rate at 1.0815 (1.0857) dollars prior. The dollar was trading at 0.9246 (0.9210) euros.
In the world of bonds, the circulation rate rose from 2.67% the day before to 2.72%. The bond index Rex decreased by 0.21% to 123.43 points. The Bund future saw a small gain of 0.22% to 129.21 points.
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