Germany’s Blue-Chip DAX 40 index has rebounded sharply in the first two weeks of 2023, jumping 8.35%, after falling 12% in 2022. The Euro Stoxx 50 Index is up 9.42% for the year. European equity markets closed lower in the last trading session of 2022, with the benchmark Stoxx 600 suffering a 12.8% yearly loss, the biggest since 2018. Support is coming from plummeting energy prices with natural gas back down to pre-Ukraine invasion levels. Support is also coming from … Continue reading “German DAX Rallies 8% to Start 2023 as Euro Rallies and Natural Gas Falls”
Germany’s annual consumer price inflation fell to 8.6% in December 2022, from 10% reported in November and below the market consensus of 9.1% preliminary estimates showed. Inflation has been running rampant mainly due to energy costs which has led the ECB to raise rates aggressively and has impacted the German Bund sending yields to levels not seen since 2011. It was the inflation lowest rate since August. The German government with a one-time payment in December lowered household natural gas … Continue reading “Germany Inflation Falls in December with Government Help on Natural Gas Bills”
The German people’s sentiment continues to suffer from soaring energy and food prices, the shadow of war in Ukraine and the morose sentiment thereto. The GfK Consumer Climate Indicator for Germany fell to a new record low of -30.6 heading into August of 2022 from a revised -27.7 in June. Forecasts were -28.9. Germany’s once stoic V-shaped recovery has long been put to bed. The ECB raised key rates by 50 bps in its July monetary policy decision which further … Continue reading “Germany Consumer Sentiment Hits All Time Low with Recession and Natural Gas Shortage Fears”
The German people’s sentiment continues to suffer from soaring energy and food prices, the shadow of war in Ukraine and the morose sentiment thereto. The GfK Consumer Climate Indicator for Germany edged up to -26 heading into June of 2022 from a record low of -26.6 in May which was expected in market forecasts. Germany’s once stoic V-shaped recovery has long been put to bed and moves by the ECB to raise rates will further cloud the mood. Despite the … Continue reading “Germany Consumer Sentiment Near All Time Low with Soaring Prices and War in Ukraine”
ECB accounts of its October monetary policy meeting addressed a lot of key questions. The big one, is inflation transitory and are we headed for stagflation? The Bank recalled that stagflation experiences in the 1970s occurred in a different environment, in which indexation allowed wages to react to energy prices. The shortage of critical supplies including energy and other commodities has “seen market-based measures of inflation compensation in the euro area had surged to their highest levels in over seven years, … Continue reading “ECB Stresses Current Inflation Hump Shaped Not Stagflation”
Germany’s benchmark Blue Chip DAX 30 index (Deutscher Aktienindex) expanded to 40 companies on 20 September adding 10 new members to the German stock index from the MDAX which will be reduced from 60 to 50 members.
Yves Mersch, senior member of the Executive Board of the ECB on Monday warned that asset prices are currently at very elevated levels. This comes at a time near all time highs in many global stock markets despite elvated risk.
Germany’s states; Saxony, Brandenburg, Hesse, Bavaria, North Rhine Westphalia and Baden Wuerttemberg all released their monthly inflation rates showing continued deflationary pressures, though there is some inflationary pricing in the core, particularly in Saxony to bring a smile to the ECB.
Fitch Ratings affirmed Germany’s Sovereign rating and long term IDR’s and unsecured foreign and local currency bonds at ‘AAA’ with a stable outlook as expected. Germany ran a surplus last year and Germany’s fiscal position is expected to continue to improve.
German software giant SAP report fourth quarter earnings on Tuesday. Last quarter cloud related sales were up 37% and $SAP gave robust guidance as it takes on cloud giants Amazon (AWS) and Microsoft however global economy risks have increased since.