Germany's DAX Index Extends Gains; BioNTech Tumbles After Scrapping Cancer Vaccine Trial
Germany's blue-chip DAX index extended its gains to a fourth day on Friday, closing 0.82% in the green, as investors assessed the country's latest labor market and other economy-related data releases.Import prices in the eurozone's largest economy rose 6.8% year over year in July, against a 6.1% gain in June, data from the country's Federal Statistical Office showed. On a monthly basis, import prices edged up 0.2%On the jobs front, federal agency Bundesagentur für Arbeit reported that Germany's unemployment rate stood at 6.4% in August, unchanged from the prior month and in line with market forecasts. The number of unemployed individuals in the country grew by 4,000, against the 6,000 increase earlier.Meanwhile, business sentiment in Germany's chemical sector "improved sharply" in August as demand for German-made chemical products rose amid supply disruptions due to the Strait of Hormuz blockade, according to a survey by the ifo Institute. The business climate index climbed to -2.4 points from -26.3 points in July.In corporate news, BioNTech (22UA.F) dropped 7.11% after it terminated a phase 2 trial for its mRNA cancer vaccine, autogene cevumeran, as an adjuvant monotherapy in patients with resected colorectal cancer. The decision followed a new recommendation from the independent Data Safety Monitoring Board. BioNTech was developing the vaccine with Roche Group's Genentech.Bayer (BAYN.F) submitted a marketing authorization application in Japan to expand the use of finerenone in chronic kidney disease. The application is supported by positive results from the life sciences company's late-stage FIND-CKD trial in adults with non-diabetic chronic kidney disease, which showed that the drug, along with standard of care, "significantly" delayed kidney disease progression and reduced cardiovascular-kidney events compared with placebo. At the end of trading, Bayer's shares were up 0.40%.Berenberg lifted its price target for RWE (RWE.F) to 72 euros from 68.50 euros, with the stock's buy rating unchanged, taking into account the energy group's recently upgraded earnings guidance and multiple upcoming catalysts. The stock added 2.08% at closing."RWE's growth trajectory is underpinned by disciplined and diverse capital allocation across several important structural power market trends, as well as a number of related upcoming catalysts and decent earnings visibility (from c75% contracted and regulated income)," the research firm said. "In our view, RWE is well-positioned and well-equipped to sustain growth momentum to its 2031E targets and beyond. The stock, rated Buy, is a firm top three pick in our utilities universe."
