Germany's blue-chip DAX index experienced a notable increase of 0.62% on Tuesday, following the release of the latest consumer price data from the euro area, which met expectations. This development sets the stage for a gradual easing of monetary policy in the near future, enticing both investors and economists alike. Preliminary figures provided by Eurostat reveal that annual inflation in the eurozone accelerated to 2.4% in December 2024, up from 2.2% the previous month.
Meanwhile, the core inflation rate remained steady at 2.7% for the fourth consecutive month, indicating a degree of stability amidst the fluctuating economic conditions. Michael Kirker, a European economist from Deutsche Bank Research, commented on the inflation print, stating that, "The lack of any major downside surprise in today's inflation data does little to change the view that further gradual easing at the January meeting is the appropriate baseline action." Deutsche Bank Research anticipates that inflation in the euro area may dip below the European Central Bank's 2% target starting in February, a development that could have significant implications for monetary policy moving forward. In a more localized context, Germany's construction sector has seen a significant downturn, worsening during the last month of 2024.
This decline reflects an accelerated contraction within total industry activity due to subdued demand. The HCOB Germany Construction PMI Total Activity Index reported a concerning figure of 37.8, marking the lowest level in eight months, and suggesting challenges ahead for Germany's construction industry. Turning to corporate developments, Siemens Energy ($ENR) faced a decline of 1.50% on Xetra.
MWB Research made the decision to downgrade the stock from hold to sell, citing that while the group is on track to meet its fiscal 2025 targets in the medium term, the current share price appears to encapsulate these positive developments and elevated investor expectations. Analysts noted, "However, the current share price already factors in these positive developments and elevated expectations, which could make it increasingly difficult for the company to exceed them." In other corporate news, Bayer ($BAYN) and Orion are making strides in China toward securing approval for the expanded use of darolutamide coupled with androgen deprivation therapy in adult patients suffering from metastatic hormone-sensitive prostate cancer.
This potential approval could signify the third indication for darolutamide, which is marketed under the name Nubeqa in China. Bayer's efforts in this regard resulted in a modest gain of 0.33% by the end of trading. $GERMANY40 $ENR $BAYN.