German stocks edged higher on Monday morning, primarily driven by significant increases in a few prominent stocks. Investors are analyzing official data indicating a rise in industrial product prices for December, while also anticipating key reports from the U.S. and Europe that could provide insights into future interest rates.
Additionally, attention is focused on Donald Trump's inauguration as President of the United States. Given that U.S. markets are closed today in observance of Martin Luther King Jr. Day, trading volumes in European markets are expected to be light.
The S&P/TSX index, which saw a 1.2% increase on Friday, climbed to 20,929.50 earlier this morning. It was recently up by 6.54 points, or 0.03%, at 20,904.00.
Notable performers in the German market include Rheinmetall, which is up 2.3%, and Fresenius, which has gained nearly 2%. Deutsche Bank, Commerzbank, Zalando, and Henkel have also posted gains ranging from 1 to 1.8%.
Meanwhile, RWE, Bayer, SAP, Daimler Truck Holding, Brenntag, Merck, Siemens, and Infineon have experienced modest upticks. However, Siemens Energy has decreased by approximately 1.3%, while Munich RE, Deutsche Telekom, Continental, and Siemens Healthineers have seen slight declines.
According to data from Destatis released on Monday, Germany's producer prices increased at an accelerated rate in December, driven predominantly by higher capital goods prices.
The yield on Germany's long-term 30-year bond is currently around 2.75%, marginally lower than last week's closing. Similarly, the 10-year bond yield has slightly decreased to about 2.5%.
Destatis data reveals that the producer price index (PPI) registered an annual growth of 0.8% in December, following a 0.1% rise in November. This annual growth is primarily attributed to a 1.8% increase in capital goods prices. Consumer, durable, and intermediate goods were also pricier compared to the same month last year, whereas energy costs declined.
The data further indicates that consumer goods prices increased by 2.6% and durable consumer goods saw a 1% rise. Intermediate goods experienced a minimal 0.1% increase, while energy prices decreased by 0.2%.
Excluding energy, producer prices rose by 1.2% in December compared to the same month the previous year, remaining stable compared to November.
On a monthly basis, producer prices dipped by 0.1%, reversing a 0.5% increase recorded in November, defying forecasts that anticipated a 0.3% rise in December.
In 2024, the average producer prices were 1.8% lower than the previous year, contrasting the 0.2% increase observed in 2023.
The material has been provided by InstaForex Company -
www.instaforex.com
