Germany's blue-chip DAX closed 0.31% lower on Thursday, as investors evaluated fresh economic data against the backdrop of persistent geopolitical uncertainty in the Middle East.
Destatis reported that producer prices rose 3% year over year in July, against a 1.8% increase earlier and the market forecast of a 2.7% rise. On a monthly basis, producer prices were 1.1% higher, compared with the expected 0.5% gain. The German Federal Statistical Office attributed the yearly increase to rising intermediate goods and energy prices.
In the eurozone, Eurostat data showed that construction output fell 1.3% month over month in June, reversing a revised 0.2% gain a month ago. Year over year, construction production declined 0.7%, down from a revised 0.7% expansion previously.
Meanwhile, following a breakdown in peace negotiations with Iran, US President Donald Trump announced on social media plans to launch a campaign to isolate Iran economically, threatening "tremendous economic consequences" for any country that conducts business with Tehran. The announcement, however, offered no specific details on potential measures or targeted countries.
In corporate news, BofA Global Research raised thyssenkrupp's (TKA.F) price objective to 22 euros from 19 euros, with an unchanged buy rating, ahead of the capital markets day for its steel business scheduled for the end of September.
"As with tk Marine and tk Accelis, we see this as a likely prelude to a partial exit of steel via an IPO; Management confirmed on a recent earnings call that an IPO is Plan A... Broadly, we see credible path from EBITDA of c. EUR440 mn to c. >EUR1.5 bn. A business which we previously assumed had limited equity value, could now be worth >EUR4-5 bn (c. half market cap). We update our model to reflect a 'risked' view on partial achievement of EBITDA uplift," the research firm wrote. The German industrial conglomerate shed 2.58% at the end of the trading day.