FX.co ★ DAX Modestly Higher After Encouraging PMI Data

German stocks saw a modest rise on Friday morning, continuing their upward trend. This uplift was supported by data revealing an unexpected increase in German manufacturing and services sector activity for January. Positive reports on euro area manufacturing activity further bolstered market sentiment.

Investors responded optimistically to comments made by U.S. President Donald Trump at the World Economic Forum in Davos, Switzerland. His statements helped alleviate some concerns surrounding tariffs and fueled hopes for potential monetary easing by the Federal Reserve.

The DAX index climbed, gaining 65.91 points or approximately 0.31%, reaching 21,483.84 earlier today.

Automotive stocks are receiving a boost due to a slight easing of tariff-related worries. BMW, Porsche, and Mercedes-Benz are all seeing gains between 2.9% and 3.1%. Volkswagen has risen by 2%, and Daimler Truck Holding has advanced by 1%.

BASF shares have risen nearly 3%, while Deutsche Post, Rheinmetall, Infineon, HeidelbergCement, Zalando, Bayer, Siemens Energy, and Merck have all appreciated by 1% to 2%.

Conversely, MTU Aero Engines has declined by 4.7%, Qiagen by 1.7%, and Deutsche Telekom by about 1%.

Data from S&P Global indicated that the HCOB Flash Germany Composite Purchasing Managers' Index (PMI) surprisingly surged to a seven-month high of 50.1 in January 2025, the highest level since June 2024, up from 48 in December and exceeding expectations, which predicted a reading of 48.8.

The HCOB Germany Manufacturing PMI ascended to an eight-month peak of 44.1 in January 2025, up from 42.5 in December. Similarly, the Services PMI increased to a six-month high of 52.5 in January from 51.2 in the previous month.

Additionally, the HCOB Eurozone Composite PMI increased to 50.2 in January 2025 from 49.6 the month before, surpassing the forecast of 49.7. The HCOB Flash Eurozone Manufacturing PMI rose to 46.1 in January 2025 from 45.1 in December, while the Services PMI slightly declined to 51.4 in January from 51.6 the preceding month.