European stocks extended their losses to Friday. Germany’s DAX index was in the red after an improvement in its producer prices for July. UK’s FTSE 100 index inched slightly lower after a decline in July’s retail sales. French CAC 40 index, as well as Euro STOXX 50, were also in the red.
According to data published earlier on Friday, the producer prices of industrial products jumped 10.4% higher in July 2021 compared to July 2020. According to the Federal Statistical Office, this was the highest increase since January 1975. Over the month, the commercial producer prices rose by 1.9%.
The increase in commercial producer prices was booted by an increase in the price of intermediate goods and energy. The price of intermediate goods climbed 15.6% compared to July 2020 and 2.3% compares to June 2021.
Steel and wood prices rose sharply in July 2021 due to the high domestic and global demand for the items. Steel prices were boosted by strong price increases for iron ore imports.
Energy prices rose 20.4% in July 2021 compared to the same month of the previous year. Compared to June 2021, energy prices increased 4.1%. The jump in the prices compared to the previous year is due to the base effects of the pandemic. Excluding energy prices, producer prices were 7.4% higher than the previous year.
DAX Index Performers
RWE AG ST was the best performer in the DAX index. The electricity generation company gained more than 1% in its stock earnings. The company recently announced its Q2 earnings that topped estimates. The company also raised its earnings outlook for 2021 after a strong performance in the first half of the year.
E. ON SE also edged higher on Friday. The electric utility company delivered a strong performance for the first half of the year. The company runs one of the biggest world’s largest investor-owned electric utility service providers.
On the flip side, Volkswagen VZO led the drags in the DAX index. The automotive manufacturer was down 1.77% earlier in the day. The company stated that a semiconductor supply shortage could cut further production.
BMW ST was also in the red. The luxury vehicles company fell more than 1.75%, a day after the company secured funding for an EV battery aiming to replace the traditional engine.