FINWIRES · TerminalLIVE
FINWIRES

DAX Index Climbs; German Producer Prices Up

By

Germany's blue-chip DAX closed 1.38% higher on Wednesday, as investors assessed fresh economic data alongside the latest updates on the European Union-US trade front.

Destatis reported that producer prices rose 1.7% year over year in April 2026, compared with a 0.2% decrease earlier and the market forecast of a 1.5% rise. The reading marks the highest increase since May 2023. The German Federal Statistical Office attributed the growth to higher energy prices, intermediate goods, and capital and durable goods.

"Today's producer price inflation confirms that a first inflation wave is in full swing. An inflation wave that remains mainly limited to energy prices but is gradually broadening. It won't be long before higher energy prices lead to knock-on effects on transportation and food costs. Needless to say, the longer the war in the Middle East and the blockade of the Strait of Hormuz last, the higher the likelihood that the initial energy price shock will not only have knock-on effects but could also be accompanied by additional supply chain frictions and, in turn, a self-enhancing inflationary spiral," ING wrote.

Markets also tracked the US-Iran conflict after Tehran warned of broader retaliation if the US resumes strikes, while continued disruptions in Hormuz kept oil prices volatile.

Meanwhile, in a bid to avoid higher US tariffs, the European Council and Parliament reached a preliminary agreement on regulations to scrap remaining duties on US industrial imports and grant preferential market access to select goods. The legislation is intended to fulfill the EU's obligations under the July 2025 trade pact.

The VDMA industry association, representing the European machinery and equipment manufacturing sector, said the EU should continue negotiations aimed at securing the same 15% tariff ceiling for remaining steel and aluminum derivative products, adding that planning certainty was crucial for manufacturers.

In corporate news, Infineon Technologies (IFX.F) was the top gainer on the index, climbing 5.11%, after it launched Moore4Power, an EU-backed semiconductor research and development project focused on smart power electronics, with 62 partners across 15 European countries.

Siemens Energy (ENR.F) gained 3.95% after announcing the early extension of its supply agreement with Austria-based energy infrastructure company Asta Group. Asta will continue supplying specialized copper and custom conductor components to all of the German energy technology company's European transformer plants through 2032.

Related Articles

Asia Markets

US Equity Indexes Fall as Trump's Warnings to Resolve Iran Standoff Send Treasury Yields Sharply Higher

US equity indexes slid as the 30-year Treasury yield rose to a two-decade high amid bets favoring higher interest rates and President Donald Trump's threat to Iran that strikes will resume if talks with the Gulf nations fail to produce a framework for a peace deal.The Nasdaq Composite fell 0.8% to 25,870.71, with the S&P 500 down 0.7% to 7,353.61 and the Dow Jones Industrial Average lower by 0.7% to 49,363.88 at the close on Tuesday.Materials, communication services, and consumer discretionary led the decliners. Health care and energy were the top gainers.Most Treasury yields rose as investors looked for evidence of a rollback in Iran's nuclear ambitions in its ongoing talks with Gulf nations to agree on a framework for resuming peace negotiations with the US. The 30-year rate jumped 3.4 basis points to 5.18%, the strongest level since the global financial crisis, amid concern that a long, drawn-out war in Iran would further worsen inflation in the US. The 10-year climbed 4.2 basis points to 4.67%, the highest since January 2025.President Trump warned strikes would resume against Iran as part of a push for a deal to end the war, Bloomberg reported. "I hope we don't have to do the war, but we may have to give them another big hit," Trump told reporters on Tuesday, following previous comments that Iran cannot have nuclear weapons.Trump said Iran has "two or three days" to reach a deal to end the war or face renewed attacks, according to a report from Al Jazeera. An Iranian official said the US threat of a massive assault at any moment will be met "resolutely," and Iran is "prepared to confront any military aggression," the news report said.Tehran's latest peace proposal to the United States involves ending hostilities on all fronts, including Lebanon, the exit of US forces from areas close to Iran, and reparations for destruction caused by the US-Israeli war, The Times of Israel cited Iran state media on Tuesday. The terms as described in the Iranian reports appeared little changed from Iran's previous offer, which Trump rejected last week.In precious metals, gold futures fell 1.5% to $4,489.8, and silver futures dropped 4.2% to $74.19.West Texas Intermediate crude oil futures fell 0.8% to $107.77, and Brent crude futures declined 0.8% to $111.24.In economic news, Redbook US same-store sales rose by 8.1% from a year earlier in the week ended May 16 after a 9.6% year-over-year increase in the previous week."Coming off last-minute Mother's Day shopping on Sunday, sales and traffic slowed across the board in the middle of the week, but picked up during the weekend as graduation, BBQ season, and warm weather approached," Redbook noted.US pending home sales increased more than expected last month as home buyers apparently shrugged off mounting economic uncertainty. The forward-looking indicator of home sales based on contract signings increased 1.4% month over month in April, the National Association of Realtors said. Analysts expected a 1% gain, according to a Bloomberg-compiled survey.In company news, Alphabet's (GOOG, GOOGL) Google said Tuesday it introduced Gemini Spark, a 24/7 AI agent designed to handle and execute digital tasks and workflows, alongside other launches. The move comes amid a proliferation of AI models that is changing the tech landscape globally, including from Amazon.com (AMZN)-backed Anthropic.

Dow JonesNasdaq CompositeS&P 500$AMZN$GOOG$GOOGL
Asia Markets

US Equity Indexes Slide as Treasury Yields Surge Amid Trump's Warning to Iran in Event of No Peace Deal

US equity indexes fell after the 30-year Treasury yield hit its highest in just under two decades, while bets favoring interest rate increases jumped amid President Donald Trump's threat to resume strikes if Iran fails to reach a peace deal.The Nasdaq Composite fell 0.3% to 26,025.7, with the S&P 500 down 0.2% to 7,390.5 and the Dow Jones Industrial Average lower by 0.2% to 49,579.2 in midday trading on Tuesday.President Trump warned strikes would resume on Iran in the coming days as part of the push for a deal to end the war, after he said he had just called off a US attack, Bloomberg reported."I hope we don't have to do the war, but we may have to give them another big hit," Trump told reporters on Tuesday, referring to talks between the Gulf nations and Tehran to agree on a framework for resuming peace negotiations.When asked how long he would wait, he said: "Well, I mean, I'm saying two or three days, maybe Friday, Saturday, Sunday. Something maybe early next week - a limited period of time."The North Atlantic Treaty Organization is considering helping ships pass through the Strait of Hormuz if it doesn't get unblocked by early July, Bloomberg reported, citing a senior official in the military alliance. Several members of NATO support the idea, but it doesn't have the necessary unanimous support, the report said, citing a diplomat from a NATO country.US Treasury Secretary Scott Bessent called on world leaders at a G7 conference to help the US fight Iranian terrorism by "rooting out the financing that sustains it," CNBC reported.West Texas Intermediate crude oil futures rose 0.1% to $108.80, while Brent crude futures fell 1% to $111.03.US Treasury yields traded mixed, but elevated, as crude oil supply-shock-driven inflationary concerns boosted bets for interest rate increases from September onwards. The 30-year rate rose 2.2 basis points to 5.17%, the strongest level since 2007. The 10-year climbed three basis points to 4.65%, the highest since January 2025.The probability of a 25 basis-point increase in US interest rates in December was at 40% from 1% a month ago, according to the CME FedWatch tool midday Tuesday. The comparisons for September and October show a similar jump in rate-increase probabilities.In precious metals, gold futures fell 1% to $4,510.2, and silver futures dropped 3% to $75.11.In economic news, Redbook US same-store sales rose by 8.1% from a year earlier in the week ended May 16 after a 9.6% year-over-year increase in the previous week."Coming off last-minute Mother's Day shopping on Sunday, sales and traffic slowed across the board in the middle of the week, but picked up during the weekend as graduation, BBQ season, and warm weather approached," Redbook noted.US pending home sales increased more than expected last month as home buyers apparently shrugged off mounting economic uncertainty. The forward-looking indicator of home sales based on contract signings increased 1.4% month over month in April, the National Association of Realtors said. Analysts expected a 1% gain, according to a Bloomberg-compiled survey.

Dow JonesNasdaq CompositeS&P 500
Asia Markets

Exchange-Traded Funds Decline, US Equities Drop After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV fell. Actively traded Invesco QQQ Trust (QQQ) shed 0.1%.US equity indexes fell in midday trading on Tuesday after the 30-year Treasury yield traded at its highest level in just under two decades and as the Iran standoff continued.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each rose about 0.8%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) added 0.3%; iShares US Technology ETF (IYW) advanced 0.1%, and iShares Expanded Tech Sector ETF (IGM) increased less than 0.1%.The State Street SPDR S&P Semiconductor (XSD) rose 2%, and iShares Semiconductor (SOXX) was up 1.7%.FinancialThe State Street Financial Select Sector SPDR (XLF) slipped 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) declined 1.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), climbed 1.3%.CommoditiesCrude oil fell less than 0.1%, and the United States Oil Fund (USO) added 1.7%. Natural gas gained 2.8%, and the United States Natural Gas Fund (UNG) was up 2.7%.Gold on Comex eased 1%, and the State Street SPDR Gold Shares (GLD) fell 1.1%. Silver dropped 2.8%, and iShares Silver Trust (SLV) lost 3.5%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 0.1%. The Vanguard Consumer Staples ETF (VDC) gained 0.3%, and iShares Dow Jones US Consumer Goods (IYK) was down 0.1%.The State Street Consumer Discretionary Select Sector SPDR (XLY) dipped 1.3%. VanEck Retail ETF (RTH) fell 0.4%, and the State Street SPDR S&P Retail (XRT) added 0.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) was up 1.2%, iShares US Healthcare (IYH) added 1%, and Vanguard Health Care ETF (VHT) rose 0.9%. IShares Biotechnology ETF (IBB) gained 0.5%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) fell 0.5%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also lower.CryptocurrencyIn midday activity, bitcoin (BTC-USD) shed 0.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) shed less than 0.1%, ProShares Ether ETF (EETH) was down 0.3%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 0.8% lower.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH