Most European stocks inched lower on Monday. Germany’s DAX index was on a standstill after the release of strong imports data. Other European indices like French CAC 40, Euro STOXX 50 and UK’s FTSE 100 index slipped.
Germany Economic Outlook
The DAX index was unchanged after better -than -expected imports data. According to the Federal Statistical Office, German Imports Price Index for May rose 1.7% MoM beating the estimate forecast of 1.4%. The German Imports for May were up 11.8% YoY in the same month.
Energy imports prices doubled in May compared with last year. Crude oil was the biggest contributor in the year-on-year imports index. Crude oil jumped 135% compared to last year. The index of imports prices excluding crude oil and mineral oil products was up by 8% YoY.
Export prices spiked 4.2% in May 2021 in comparison to last year. This was the highest year-on-year increase since March 2011. It also increased by 0.7% since April.
Turnover in the non-financial business economy in Germany was up in May. According to the Federal Statistical Office, nominal turnover increased by 1.6% on a seasonally and calendar adjusted basis.
The DAX index will react to the German Unemployment Change data which will be released later in the week. Analysts expect the unemployment rate to slip 16,000.
The index will also react to the German Purchasing Manager’s Index (PMI) later in the week. Analytical forecasts show a 64.9% increase from the previous 64.4%.
Linde PLC was the topmost performer in the DAX index. The chemicals company gained 1.7% in its stock earnings. other top performers include RWE AG ST, E. ON SE and Deutsche Boerse. Each gained more than 0.50%.
Heidelberg Cement led the losses in the index. The building and construction company lost 1.47% in its stock prices. Other laggards include Deutsche Bank, Daimler, and BMW ST. Each declined by 1.13%, 1% and 0.9% respectively.