In the latest updates from the Eurozone, German shares experienced a slight adjustment, ultimately closing flat on Friday. This development follows the announcement of cooling inflation rates across the Eurozone, sparking speculation that the European Central Bank (ECB) may be preparing to implement another rate cut in the near future. At the end of trading, the blue-chip DAX index reflected a minor decline of 0.03%.
Recent preliminary data released by Eurostat indicated a decrease in the annual inflation rate within the Eurozone, dropping to 2.2% in August, down from 2.6% in July. The European Union's statistical office attributed this decline primarily to shifts in consumer prices, primarily influenced by the services sector.
Furthermore, core inflation figures for August are anticipated at 2.8%, marking a decrease from 2.9% recorded in July. Jack Allen-Reynolds, deputy chief euro-zone economist at Capital Economics, commented, “We have reservations about whether August's unexpected surge in services inflation will deter the ECB from considering interest rate cuts during its upcoming meeting in September.” In terms of labor market statistics, Eurostat revealed that the unemployment rate within the Euro area eased to 6.4% in July, a slight drop from the previously reported 6.5% in June.
This reduction equates to nearly 11 million individuals without employment within the bloc during the reported month. Focusing specifically on Germany, the federal agency Bundesagentur für Arbeit reported that the unemployment rate in the nation remained stable at 6% for August, demonstrating resilience in the labor market amid broader economic challenges. On the corporate front, Delivery Hero ($DHER) witnessed a notable increase, with shares rising by 8.04% after Deutsche Bank adjusted its price target for the company to 25 euros from a prior target of 23 euros.
Importantly, the bank maintained its recommendation for investors to hold onto their shares. Deutsche Bank analysts remarked in a note, “Delivery Hero reported a favorable set of quarterly results, highlighted by an acceleration in Gross Merchandise Value (GMV) growth during the second quarter, which was predominantly driven by increasing order volumes.
This positive momentum was particularly observed in the MENA segment, while performance in Asia was less favorable.”.