DAX Drops On Sino-US Tensions

By RTTNews Staff Write  ✉   | Published:

German stocks fell on Monday amid heightened Sino-U.S. tensions after reports suggested that the United States is preparing to impose sanctions on some Chinese officials.

Upbeat trade data from China and encouraging German industrial output data helped to limit overall losses to some extent.

Official data revealed that German industrial output grew more-than-expected in October, driven by the higher production of automobile and capital goods.

Industrial production climbed 3.2 percent month-on-month, faster than the 2.3 percent rise in September. Economists had forecast the monthly growth to ease to 1.6 percent in October.

On a yearly basis, industrial output fell 3 percent, but that was slower than the revised 6.7 percent decrease posted in September.

The benchmark DAX was down 95 points, or 0.7 percent, at 13,205 after gaining 0.4 percent on Friday.

A drop in euro zone bond yields weighed on banks, with Commerzbank and Deutsche Bank falling 0.7 percent and 1.3 percent, respectively.

Bayer shed 0.6 percent. The company has signed an agreement with Atara Biotherapeutics Inc to manufacture and sell the U.S. drug maker's experimental cancer therapy.

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