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Blue-chip DAX Closes Flat; German Producer Prices Ease

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German equities kicked off a new trading week little changed, with the blue-chip DAX index up 0.06% on Monday's close, as investors digested the latest industrial production data from the eurozone's largest economy.

Destatis reported that Germany's producer prices rose 1.8% annually in June, cooling from 2.2% growth in May. The German Federal Statistical Office attributed the year-on-year increase to higher intermediate goods prices alongside an uptick in energy costs. Month-on-month, producer prices were 0.3% lower, against the expected 0.2% decline.

On the geopolitical front, the US and Iran have reestablished backchannel diplomatic efforts following a weekend of military attacks. Iranian Foreign Ministry spokesperson Esmaeil Baghaei confirmed with the media that Washington used intermediaries to restart talks. The diplomatic pivot comes after a series of US airstrikes in response to the deaths of three of its service members in Jordan and Iraq, alongside Iranian attacks targeting critical infrastructure in the Gulf.

In corporate news, BASF (BAS.F) confirmed tothat it approached several banks regarding the planned initial public offering and Frankfurt listing of its Agricultural Solutions business. A spokesperson said the company is targeting mid-2027 for capital market readiness, though the exact listing timeline depends on market conditions. The German chemicals company lost 0.98% at the end of the session.

Meanwhile, mwb Research upgraded its rating for Infineon Technologies (IFX.F) after a recent "sharp" share price pullback.

"Following the share-price correction, we believe the previous valuation asymmetry has largely closed. Infineon's strong positioning in AI power and the improving cyclical backdrop in core markets [are] now more appropriately balanced against the fundamentals and expectations. Therefore, we upgrade our recommendation to HOLD from SELL, while maintaining our EUR 60.00 price target, implying roughly 18.5x 2027E EV/EBIT," the research firm wrote. The German chipmaker was up 0.53%.

In other news, Andy Burnham became the UK's newest prime minister after Keir Starmer formally stepped down from the post. Burnham is the country's 59th prime minister and its fifth in the past four years.

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Dow JonesNasdaq CompositeS&P 500$ISRG$META$NFLX$SMH
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