Most European stocks were down on Wednesday morning. Germany’s DAX index declined after weaker than expected exports and imports data for April. Other European indices like FTSE 100 and Euro STOXX 50 fell while CAC 40 remained on a standstill.
Germany’s Economic Outlook
According to data released by the Federal Statistical Office, Germany recorded weak economic data in April 2021. Germany Exports in April 2021 fell to 0.3% MoM from the previous month’s 1.3% missing the 0.5% estimate forecast. This fueled a decline in the DAX index.
Germany’s exports in April 2021, were 0.5% lower than February 2020 before the lockdown restrictions were imposed in the country. Germany exported goods worth €111.8 billion in April. This was a 47.7% increase compared with the exported goods in April 2020. This was caused by the low level of foreign trade that month due to the Corona virus pandemic.
Germany exported goods worth €60.7 billion to the Member States of the European Union (EU) in April 2021. This was a 56.8% increase compared to April 2020.
Germany Imports in April contracted 1.7% MoM from the previous 7.1%. This was 5.5% higher than the imports data in February 2020. Germany imported goods worth €96.3 billion. Imports increased by 33.2% compared to April 2020.
Germany imported goods of value €50.8 billion from European Union (EU) Member States. This was a 44.8% increase compared to April last year.
The German Foreign Trade Balance closed in at €15.9 billion in April this year. Despite being an increase from the previous €14.0 billion, the figures were weaker than the estimated forecast of €16.3 billion.
The European Central Bank is yet to hold its policy meeting on Thursday. The ECB decision on whether to extend their elevated pace of emergency bond-buying will be released on Thursday. However, the ECB promised to keep financing conditions favorable amidst rising bond yields and a stronger euro.
DAX Index Performers
The top movers in the DAX index were MERCK, Continental AG, and Siemens AG. MERCK, a pharmaceutical company, rose by 0.76%. Continental AG rose by 0.68% while Siemens AG rose by 0.62%. Both recorded large gains in their stock earnings.
Deutsche Bank AG was the worst performer in the index with a 1.92% as its stocks fell by 1.92% ahead of the ECB decision. Delivery Hero and Adidas were also among those who lagged. Delivery Hero, an online food delivery service, recorded a 1.38% decline in its stock prices while Adidas fell by 0.46%.