German stocks closed downcast on Tuesday, with the DAX index 0.20% in the red, joining a regional retreat of European blue-chip indices. The index declined for the second consecutive trading day despite the recovery of industrial production in August, which ING said did not alleviate lingering concerns that Europe's top economy is again tracking a path to recession. Data from Germany's Federal Statistical Office showed that industrial production rose 2.9% month over month in August, overturning a 2.9% drop in July.
"Currently, any data point that isn't negative is considered positive news for the German economy, and this morning's industrial data is no exception. However, today's increase is not an indication of a recovery; it's more of a technical rebound following July's sharp decline, highlighting that the economy is still stuck in stagnation.
Based on the hard data available for the first two months of the third quarter, the risk of yet another negative quarter remains high," the Dutch lender added. Meanwhile, European Central Bank's Supervisory Board Vice Chair Frank Elderson told Slovenia's national daily newspaper Delo that the euro area's closely monitored services inflation is expected to decelerate heading into 2025.
The forecast precedes the ECB's monetary policy decision on Oct. 17, when policymakers are widely expected to further ease monetary policy. On the corporate front, Commerzbank is restructuring its organization amid an expansion of its offerings for ultra-high-net-worth individuals and family offices.
The German lender is consolidating relevant functions and specialized departments to establish a division focused on the aforementioned client groups. At closing, Commerzbank gained 0.09%..