German DAX Index Rises Amid Tame US Inflation Data

The German benchmark DAX index rose for two consecutive sessions on August 13 and 14, closing at 26,485.30 on Friday morning. The market gains were driven by tame U.S. inflation data, which increased expectations that the Federal Reserve System will maintain current interest rates, and a drop in Brent crude futures to $87.25 a barrel on Thursday.

Corporate earnings fueled specific stock gains. Sixt shares soared 5% following record first-half revenue, and SAP climbed over 4% on Friday. Other advancing stocks included Rheinmetall, Thyssenkrupp, and RWE, the latter of which reported first-half core profits that exceeded forecasts. In contrast, automotive stocks such as Volkswagen and Mercedes-Benz saw losses of up to 1.1% on Thursday, while E.ON fell more than 4% and Freenet AG shares slipped after a 30% drop in second-quarter net income.

Despite the equity market's growth, the Statistisches Bundesamt reported that German wholesale price inflation accelerated to 5.3% in July, up from 4.9% in June. Officials attributed this trend to higher energy and raw material prices resulting from conflict in Iran and the Middle East.