DAX Index Climbs; German, Eurozone Construction Slumps Continue
German shares closed Thursday in the green, with the blue-chip DAX index gaining 0.60%, as investors digested the latest construction PMI surveys and the newest updates on the US-Iran conflict.The downturn in Germany's construction activity continued in May, with persistent sector-wide contraction led by the housing sector. According to S&P Global, the Germany Construction PMI Total Activity Index ticked up to 42.4 from April's 13-month low of 42.1, but remained far below the 50 no-change mark."Conditions in the construction sector remain challenging to say the least, with virtually no let-up on either the demand or cost front since April. Total industry activity continued to fall sharply during May, a reflection of the current backdrop of soaring material prices and heightened uncertainty which have severely suppressed demand in recent months," S&P Global Market Intelligence economics associate director Phil Smith said.In the euro area, contraction in the construction industry also slowed in May amid a softer drop in new orders and cooling input cost inflation. Based on the latest S&P Global survey, the Eurozone Construction PMI Total Activity Index inched up to 43.7 from 41.7 a month ago.On the geopolitical front, hopes for a de-escalation in the broader US-Iran war resurfaced after the US brokered a ceasefire between Israel and Lebanon, though uncertainty remained after Hezbollah reportedly rejected the proposal and Israel signaled it would keep troops in southern Lebanon, Reuters reported. "That ceasefire is conditional on Hezbollah also stopping fighting, but in theory, the news helps to take out a key sticking point in the US-Iran talks that was holding up a deal," Deutsche Bank Research wrote.In corporate news, Lufthansa (LHA.F) said the nose gear of a Boeing (BCO.F) 787-9 Dreamliner it operates "unexpectedly retracted" while the aircraft was parked at a gate at Frankfurt Airport. The airline said only crew members and ground staff were on board at the time, with several employees sustaining injuries."We are currently investigating the exact circumstances together with the relevant authorities. Technicians and support staff are on site," a Lufthansa spokesperson told. Lufthansa gained 1.66% at close, while Boeing's Xetra shares were up 0.67%.Suss MicroTec (SMHN.F) will make its debut on Frankfurt's MDAX index for the first time, starting on June 22. The semiconductor industry-focused equipment and processes company's inclusion reflects its strong market performance. Suss MicroTec fell 3.47% at the end of the trading day.
