European stocks started the week in a somber mood. Germany’s DAX index remained unchanged after an improvement in the country’s wholesale prices for June. UK’s FTSE 100 index edged lower ahead of the country’s CPI for June. French CAC 40 index as well as Euro STOXX 50 index also slipped.
Germany’s Wholesale Prices
Germany’s wholesale prices for June were hovering at a record high. According to the Federal Statistical Office, wholesale prices rose 10.7% in June compared to June 2020. This was the highest level since October 1981.
The wholesale prices have been up for 3 consecutive months. This was partly driven by the low-price levels due to the coronavirus pandemic. In June 2021, wholesale prices increased 1.5% MoM.
The greatest influence on the rise in wholesale prices was the price increase in wholesale petroleum. The prices in wholesale petroleum products rose 37.7% YoY in June 2021.
Wholesale scrap and residual materials recorded strong price increases compared to the previous year. They were advanced 77.6% compared to last year. Ores, metals, and metal semi-finished products inched 54.2% on a year-on-year basis.
Germany’s DAX index will react to Germany’s Consumer Price Index (CPI) for June. The CPI data is expected to remain at a standstill at 0.4%.
DAX Index Performers
RWE AG ST was the best performer in the DAX index on Monday. The electric power distribution company gained more than 1.63% in its stock earnings. RWE will be investing in the energy transition and aims to be carbon neutral by the end of 2040.
Siemens Energy AG was also among the top performers. The automation company recently raised its profit targets and planned share buyback. The company gained 1.28% in its stock prices.
Deutsche Boerse rose 1.18% on Monday. The capital market company announced its plans to buy Swiss fintech crypto Finance to expand its offering for digital assets.
Volkswagen VZO was also ranked among the top performers. The automotive manufacturer’s sports car division, Porsche, agreed on a joint venture with high-tech electric vehicle company Rimac which will include its high-end Bugatti marque.