German stocks gained momentum on Wednesday in anticipation of crucial U.S. inflation data and the Federal Reserve’s forthcoming interest rate decision.
Simultaneously, Germany experienced a rise in consumer price inflation in May for the first time in five months, according to finalized figures from Destatis. The consumer price index increased to 2.4% in May from the persistent 2.2% observed in April, which had been the lowest rate in three years. These figures were consistent with the initial estimates.
EU-harmonized inflation also saw a rise, climbing to 2.8% in May from April’s 2.4%, in line with forecasts. On a month-over-month basis, consumer prices went up by 0.1%, while the Harmonized Index of Consumer Prices (HICP) rose by 0.2%, both unchanged from preliminary estimates.
The benchmark DAX index increased by 93 points, or 0.5%, reaching 18,462, recouping some losses after a 0.7% decline in the prior session.
Banks showed strong performance, with Commerzbank and Deutsche Bank each gaining around 1%. Conversely, automakers saw declines ahead of a critical announcement regarding new EU tariffs on imports of Chinese electric vehicles. BMW dropped by 1.5%, Mercedes-Benz decreased by 0.9%, and Volkswagen fell by 1.4%.
