Germany's DAX index experienced a decline from its recent record high on Wednesday, largely due to fears surrounding the upcoming decision on monetary policy from the European Central Bank (ECB), and disappointment over falling Business Climate Indicator readings. The ECB's decision is expected to be announced later today.
Earlier today, data revealed that the Ifo Business Climate indicator fell to 85.2 in January, compared to a revised figure of 86.3 last month. This result did not meet the predicted market consensus of 86.7 and represents the lowest value since May 2020.
The DAX index, composed of forty major companies, is currently sitting at 16,824.34, marking a 0.19 percent decrease from Wednesday's close of 16,856.85. Today's trading has seen a high of 16,866.49 and a low of 16,817.00.
Of the forty companies on the index, only eight have shown a growth in their trading position since yesterday.
Symrise, Fresenius, and Zalando have enjoyed an increase of over 1 percent during today's trading.
Conversely, Vonovia has suffered the greatest loss, with a decline of nearly 2 percent. Other companies including Infineon Technologies, Siemens Energy, adidas, Volkswagen, Hannover Ruck, Rheinmetall, Porsche, Continental, Merck, Brenntag, Mercedes Benz, and Commerzbank have all experienced a decrease of over 1 percent. The EUR/USD exchange rate has risen by 0.09 percent to 1.0893 while the Dollar Index has fallen by 0.04 percent, resulting in a current value of 103.19.
In anticipation of the ECB decision, German bond yields have risen by 0.79 percent and are currently sitting at 2.3675 percent in comparison to the previous close of 2.3490 percent - representing a two-month high.
