Stock market buoyed: Dax closes 1.76 percent higher - MDax benefits even more from US inflation data

Stock market buoyed: Dax closes 1.76 percent higher - MDax benefits even more from US inflation data

According to a report by www.sueddeutsche.de,
Encouraging inflation data from the USA boosted the German stock market on Tuesday. The leading index Dax extended its gains and closed 1.76 percent higher at 15,614.43 points. The MDax of medium-sized companies benefited even more from the US inflation data: it ended trading with an increase of 3.29 percent to 26,245.40 points. Price inflation in the USA weakened noticeably in October, meaning that consumer prices rose significantly less than in the previous month and also less than economists had expected. Core inflation, which economists pay particular attention to, also fell. These encouraging developments led to a rise in European indices and New York's leading index, the Dow Jones Industrial.

The impact on the German stock market was particularly positive for interest-sensitive stocks such as real estate stocks and companies in the e-commerce sector. Vonovia, a real estate company, was one of the biggest DAX winners with a share price increase of 8.3 percent, while Zalando, an online retailer, gained 10.6 percent in value. RWE shares, which had already been driven by good business figures, also received an additional boost from the data and ended 3.7 percent higher. According to quarterly figures, ProSiebenSat.1 and Delivery Hero took the top places in the MDax with price premiums of 12.7 and 10.4 percent respectively.

The euro jumped following the inflation data and was last trading at $1.0762. The current yield on the German bond market remained at 2.72 percent. The Rex bond index fell by 0.03 percent to 123.58 points, while the Bund future rose by 0.86 percent to 130.86 points.

These positive developments may lead investors to invest more in interest-sensitive and growth-dependent stocks, while bonds become less attractive. In addition, the rise of the euro compared to the US dollar could have an impact on export companies, as a stronger euro could affect their competitiveness.