DAX 30 Up as Factory Orders Show Fastest Growth in 2 Years

on Dec 6, 2016

Factory orders data for October showing month-on-month growth of 4.9% is the big story for the DAX this morning. Figures provided by Destatis, Germany’s Federal Statistics Office, indicate that October’s growth rate is the highest seen in 2 years and indicates a strong end of the year for the European industrial giant, in terms of economic activity. A rise of 0.6% had been forecast. On an annual basis, growth was up to 6.3% for October, from September’s reading of 2.9%. The increase in growth came from orders from countries outside of the Eurozone, whose figures remained unchanged, and from domestic clients. Non-Eurozone factory orders were up 3.9% and domestic orders 6.3%. The autumn uptick by the manufacturing sector is expected to result in a positive contribution to Germany’s GDP growth reading at the year’s end.

Just past the midday mark, the DAX 30 is showing a gain of 0.22%. Energy companies and banks are the big gainers so far with Eon and RWE, the electric utility companies, are up 5.87% and 4.51% respectively. Deutsche Bank is up 3.96% and Commerzbank 1.94%. Deutsche Bank has warned that Italy’s referendum result spells Eurozone turmoil over 2017, while the bank has also announced new heads of innovation, Elly Hardwick, and chief technology officer for innovation, Philip Milne. The move is being interpreted as a clear strategic statement on the bank’s future as a progressive player in the investment in and adoption of fintech. Insurer Allianz is up 0.66% and mass media conglomerate Prosiebensat 1 Media 1.94%.

Elsewhere, Fresenius Medical care is showing a gain of 1.14% and semiconductor manufacturer Infineon Technologies 1.71%.
Car manufacturers, which showed strong gains over yesterday’s session have seen BMW add a fractional 0.04% and Daimler 0.45%, though Volkswagen has dropped back to some extent today, recording a 0.33% loss so far. Technology company SAP is down 0.49% and Siemens 0.64%. Pharmaceuticals giant Merck has recorded a loss of 0.46% and industrial gases company Linde 0.55%. Henkel, which specializes in cleaning products has fallen by 0.8% and HeidelbergCement 0.45%.

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