European stocks started the day on a positive note. The DAX index was up more than 120 points after the release of Germany’s retail sales for July. UK’s FTSE 100 gained more than 50 points ahead of the country’s manufacturing PMI for August. French CAC 40 index, as well as Euro Stoxx 50, were also up.
Germany’s Economic Stance
According to provisional results by the Federal Statistical Office, retail sales in Germany came in 5.1% less in July 2021 than in June 2021. Compared to February 2020, before the onset of the pandemic, retail sales in July 2021 were 3.8% higher in real terms. Compared to July 2020, sales in July 2021 fell 0.3%.
Retail sales of food, beverages, and tobacco fell 2.4% compared to the previous month. Sales in supermarkets and hypermarkets fell 1.3% compared to June 2021. The non-food retail sector recorded a decline in sales in July 2021. The sales came in 7.1% lower compared to the previous month. However, they were 6.1% above the pre-pandemic levels.
The internet and mail order business recorded a real, calendar, and seasonally adjusted sales slump of 11.9% compared to June 2021. Nonetheless, the sales in the industry were 20.7% above the pre-Covid levels in February 2020.
The German Manufacturing Purchasing Managers Index (PMI) for August came in at 62.6, slipping to a six-month low. Supply shortages hampered production. New orders continued to rise sharply, albeit at a slower pace.
Delivery Hero was the best performer in the DAX index. The food delivery company was up 3.14%. The company’s earnings for the second quarter beat estimates. The company also raised its overall 2021 outlook in August.
Fresenius Medical Care gained 2.18% in its stock earnings. The Kidney dialysis centers company recently invested an additional $25 million in Biotech platform Humacyte, aiming at expanding its business.
Deutsche Bank AG rose 2.39% earlier on Wednesday. The investment banking company recently announced mandatory vaccination for anyone entering its new US headquarters.
Continental AG was among the worst performers in the DAX index. The German multinational automotive parts manufacturing company inched lower amid global chip shortages.