German Market Higher, But Elringklinger Declines

The German market was higher on Monday, after data released by Eurostat revealed that the euro area jobless rate declined to the lowest since April 2012. The unemployment rate dropped to 11.2 percent in January from revised 11.3 percent in December. It was forecast to remain at December’s originally estimated rate of 11.4 percent. This was the lowest rate recorded since April 2012.

Eurozone inflation remained negative for the third straight month in February but the rate of decline in prices slowed more than expected, flash estimate from Eurostat revealed. The harmonized index of consumer prices fell 0.3 percent from last year, slower than January’s 0.6 percent decline and the expected decrease of 0.5 percent.

Eurozone manufacturing sector growth remained stable in February, final data from Markit Economics showed. The final Purchasing Managers’ Index came in at seasonally adjusted 51, unchanged from January’s six-month high. The reading was below the flash score of 51.1.

Meanwhile, British manufacturing activity was the strongest in seven months during February, at 54.1, with growth in output and new orders strengthening further, results of a survey by Markit Economics showed. Economists had forecast a score of 53.3.

In China, the central bank Saturday announced its decision to lower its key rates. The bank cut its one-year lending rate by 0.25 percentage points to 5.35 percent. It reduced deposit rates by 0.25 percentage points to 2.5 percent.

The Euro Stoxx 50 index of eurozone bluechip stocks was adding 0.05 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, was falling 0.20 percent.

The DAX index advanced 0.29 percent.

ThyssenKrupp gained 1.6 percent. Peer Salzgitter added 1.7 percent.

BMW and Volkswagen were rising 1.5 percent and 1.3 percent, respectively. Daimler was moderately higher.

On the downside, car parts maker Elringklinger fell around 4 percent. The company reported full year results today.

HeidelbergCement, Lufthansa and RWE were losing between 0.3 percent and 0.5 percent.

Other markets in the region were mostly in the green.

The Asian stocks rose broadly as investors shrugged off soft U.S. data and focused on the weekend interest rate cut in China. However, the rate cut had only a limited impact on sentiment as the move was largely priced in.

In the U.S., futures point to a higher open on Wall Street. In the previous session, the major U.S. averages fell between 0.3 percent and 0.5 percent, as investors weighed solid pending home sales figures against soft consumer sentiment and GDP data.

Crude for April delivery fell $ 0.48 to $ 49.28 per barrel, while gold gained $ 1.7 to $ 1214.8 a troy ounce.

by RTT Staff Writer

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