German stocks surpass Europe’s STOXX 600, reaching a new all-time high.
Tuesday’s record high for German shares was bolstered by increases in industrial firms and insurers, although statistics indicated that the largest economy in the euro zone experienced a slowdown in the services sector in November.
Propelled by robust increases in Allianz (ALVG.DE) and Daimler Truck Holding (DTGGe.DE), Germany’s DAX (.GDAXI) opened a new page and increased 0.8%, while the STOXX 600 index (.STOXX)
opens a new tab that is 0.4% higher closed.
Compared to the pan-European STOXX 600 index, which has gained 10% so far this year, the German index has increased by about 18.7%.
business activity in Germany and the euro zone as a whole shrank in November, albeit more slowly than it had the month before.
In the meantime, bond yields fell precipitously as a result of an unexpectedly large drop in inflation, prompting European Central Bank conservative Isabel Schnabel to observe that any interest rate increases are “rather unlikely.”
Real estate stocks that are susceptible to rates (.SX86P).leads sectoral gains in Europe, rising 1.8%, and opens a new tab.
Exposed to China, HSBC (HSBA.L) has opened a new tab, while Prudential (PRU.L) has opened a new tab slipped as a result of Moody’s downgrade of China’s credit ratings.
According to Danni Hewson, head of financial analysis at AJ Bell, the expectation is that the slowing economic growth is going to have a knock-on effect for big international companies” following Moody’s decision to downgrade China’s outlook.
The largest sectoral decliners were miners (.SXPP), opens new tab, down -0.9% as concerns about demand from China, the world’s largest consumer, caused metal prices to drop.
The German medical technology company Carl Zeiss Mediate (AFXG.DE) opened a new tab falling 1.7% after J.P. Morgan launched the company with a “underweight” rating, while the healthcare sector (.SXDP) opened a new tab eased 0.3%.
Barclays Financial Group (BARC.L)
, opens new tab dropped 2.5% following a move by Qatar Holding, one of its biggest shareholders, to sell about 510 million pounds ($644 million) worth of its shares.
After AT&T (T.N) selected the Swedish telecom equipment manufacturer over Finnish competitor Nokia (NOKIA.HE) to create a communications network, Ericsson (ERICb.ST) opened a new tab and surged 6.1%, sending the latter’s shares down 5.9% to the bottom of the STOXX 600.
