German Stocks End Week Lower; Bayer Falls Amid Apollo Deal
German shares closed the trading week lower, with the blue-chip DAX index 0.13% in the red on Friday, as investors assessed oil price movements amid renewed US-Iran tensions to gauge potential changes in upcoming central bank decisions. "Geopolitical headlines and uncertainty on the durability of the peace deal in Iran are back. The oil price has increased from just above USD 70 per barrel to just below USD 80 over the last couple of days. We doubt this movement is large enough to "obviously" impact central bank decisions in September, but risk balances shift slightly," BofA Global Research said. "The renewed increase in oil prices marginally supports our assumption that the ECB is still more likely than not to hike again in September." For the week ahead, the economic data calendar includes the latest wholesale price report for Germany on July 14, while the eurozone industrial production report for June is due on July 15. Final June inflation prints from Spain and Italy are also due next week. On the corporate front, Bayer (BAYN.F) agreed to sell a minority, noncontrolling stake in its long-acting reversible contraceptives business to Apollo-managed funds and affiliates in.
German shares closed the trading week lower, with the blue-chip DAX index 0.13% in the red on Friday, as investors assessed oil price movements amid renewed US-Iran tensions to gauge potential changes in upcoming central bank decisions. "Geopolitical headlines and uncertainty on the durability of the peace deal in Iran are back.
The oil price has increased from just above USD 70 per barrel to just below USD 80 over the last couple of days.
We doubt this movement is large enough to "obviously" impact central bank decisions in September, but risk balances shift slightly," BofA Global Research said. "The renewed increase in oil prices marginally supports our assumption that the ECB is still more likely than not to hike again in September." For the week ahead, the economic data calendar includes the latest wholesale price report for Germany on July 14, while the eurozone industrial production report for June is due on July 15.
Final June inflation prints from Spain and Italy are also due next week.
On the corporate front, Bayer (BAYN.F) agreed to sell a minority, noncontrolling stake in its long-acting reversible contraceptives business to Apollo-managed funds and affiliates in.