DAX Index Gains; German Construction Sector Downturn Eases
German shares kicked off a new trading week in the green, with the blue-chip DAX index rising 0.15% at Monday's close, as investors digested fresh construction PMI surveys and the latest domestic manufacturing data. While Germany's construction sector remained in contraction territory in June, the rate of decline in total activity, new orders and employment moderated despite sustained cost pressures. According to S&P Global, the German Construction PMI Total Activity Index ticked up to 44.8 from 42.4 in May, marking its highest level since March but remaining below the 50-point no-change threshold. In other economic news, Germany's new manufacturing orders rose 1.9% month over month in May, beating a revised 3.2% drop a month ago and the expected 1.1% growth. Annually, factory orders were up 6.2%, compared with a revised 2.1% gain earlier. "It sounds counterintuitive, but the conflict has provided a boost to parts of German manufacturing. The initial support came from stockpiling and more recently, some companies have benefited from Asian competitors being more exposed to disruptions affecting trade routes through the Strait of Hormuz," ING said, noting that order books are.
German shares kicked off a new trading week in the green, with the blue-chip DAX index rising 0.15% at Monday's close, as investors digested fresh construction PMI surveys and the latest domestic manufacturing data.
While Germany's construction sector remained in contraction territory in June, the rate of decline in total activity, new orders and employment moderated despite sustained cost pressures.
According to S&P Global, the German Construction PMI Total Activity Index ticked up to 44.8 from 42.4 in May, marking its highest level since March but remaining below the 50-point no-change threshold.
In other economic news, Germany's new manufacturing orders rose 1.9% month over month in May, beating a revised 3.2% drop a month ago and the expected 1.1% growth.
Annually, factory orders were up 6.2%, compared with a revised 2.1% gain earlier. "It sounds counterintuitive, but the conflict has provided a boost to parts of German manufacturing.
The initial support came from stockpiling and more recently, some companies have benefited from Asian competitors being more exposed to disruptions affecting trade routes through the Strait of Hormuz," ING said, noting that order books are.