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German DAX Index Closes Flat as Eurozone Inflation Ticks Up

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German shares closed little changed on Wednesday, with the blue-chip DAX index gaining 0.01%, after the release of the eurozone's latest inflation print.

According to final data from Eurostat, the euro area's annual inflation rate rose to 2.9% in July from 2.8% a month ago, in line with the flash estimate. Meanwhile, the core rate, which excludes energy, food, alcohol and tobacco, came in at 2.5%, consistent with the preliminary forecast and up from the previous 2.4%.

Back home, a new ifo Institute business survey found that 25.4%, or a quarter, of German businesses worry about losing their competitive edge outside the European Union, while 17% reported a deteriorating position for German industrial products within European markets. Conversely, only 5.2% of businesses report improvement in competitiveness outside Europe, while 6.3% see competitive gains within the continent. According to ifo, the automotive sector's situation is "particularly difficult," with 43% reporting a weaker standing outside the bloc.

On the geopolitical side, pessimism regarding the reopening of the Strait of Hormuz is growing, as US President Donald Trump said in a social media post that no negotiations are currently underway with Iran and no future meetings are scheduled. The US leader added that the naval blockade of Iranian ports remains in "full force and effect."

As for corporate updates, Munich Re (MUV2.F) agreed to purchase US-based insurance technology company At-Bay to bolster its position in the cyber market. The deal, expected to close in the first quarter of 2027, has an enterprise value of $575 million. The German reinsurance group was down 1.68% at closing.

Meanwhile, Rheinmetall (RHM.F) fell 2.72%, as mwb Research flagged that the German defense technology company needs a "significant" volume of order intake to fill the 2028 revenue consensus gap.

"Rheinmetall's (RHM) backlog leaves little doubt that the European defense spending cycle is accelerating and that RHM profits from it. However, medium-term consensus appears to imply an increasingly demanding backlog conversion profile, leaving limited room for execution delays or programme slippage. Of the EUR 80.5bn reported backlog, EUR 30.2bn of fixed orders are scheduled for conversion within 2.5 years. This fully covers consensus through 2027 but leaves 2028 heavily dependent on orders that have not yet been signed," mwb wrote.

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Dow JonesNasdaq CompositeS&P 500$SNDK$TRGP$XOM
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Update: Technology Pushes US Equity Indexes Lower as 30-Year Yield Touches 19-Year High, Crude Oil Rises

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Dow JonesNasdaq CompositeS&P 500$TRGA$XOM
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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