DAX Rises After German Inflation Data
European stocks latched onto small gains Wednesday, buoyed after European Central Bank President Mario Draghi said its bond-buying program will likely continue if underlying inflation in the region remains subdued. The German DAX stock index is trading at 12.280, having gained 0.48%.
Germany's Parliament elected Angela Merkel for her fourth term as Chancellor on Wednesday, putting an end to nearly six months of political drift in Europe's biggest economy. She received 364 out of 709 votes in the first round of voting in parliament – 11 more than required to gain an absolute majority.
The growth of the consumer price index in Germany slowed in February. The final data of the statistical office Destatis showed that the consumer price index rose by 1.4% year-on-year in February after growth of 1.6% in January. This was the third decline in a row and the lowest since November 2016. On a monthly basis, consumer prices rose by 0.5% in February after a decrease of 0.7% in January.
Eurozone industrial production was weaker than expected in January. Data from the Eurostat showed production in the 19 countries sharing the euro fell 1.0% month-on-month in January for a 2.7% year-on-year rise. Economists had expected only 0.4% monthly decline and a 4.7% year-on-year increase. It was the first decline in four months.