German stocks experienced a downturn on Monday, accompanied by a slight increase in bond yields. Investors were strategically aligning themselves ahead of the release of the preliminary German Consumer Price Index (CPI) data and a speech by Federal Reserve Chair Jerome Powell scheduled for later in the day.
Official statistics revealed that German import prices saw a modest rise for the third consecutive month in August. Specifically, import prices increased by 0.2 percent year-over-year in August, a deceleration from the 0.9 percent increase observed in July.
The primary factor behind the slower rise in August was a 5.4 percent decrease in energy import costs. Excluding energy, import prices witnessed a 0.9 percent increase compared to the same period last year.
Additionally, the data indicated that export price inflation held steady at 0.8 percent. On a month-to-month basis, export prices remained unchanged, following a 0.1 percent decline in July.
The benchmark DAX index dropped by 91 points, equating to a half-percent decrease, settling at 19,382. This followed a 1.2 percent rally on Friday.
In the corporate sector, Volkswagen's shares fell by 2.5 percent after the automaker revised its 2024 outlook downward. Both BMW and Mercedes-Benz saw their shares drop by approximately 2 percent.
