(RTTNews) - German stocks gave up early gains to trade lower on Tuesday after data showed the country's producer price inflation hit a fresh record high in August, driven by energy prices.
Producer prices registered an annual increase of 45.8 percent in August, faster than the 37.2 percent rise in July, Destatis reported. The rate was forecast to ease slightly to 37.1 percent.
Energy prices soared 139.0 percent in August from the last year. Excluding energy, producer prices were up 14.0 percent.
On a monthly basis, producer prices gained 7.9 percent, the highest on record, from 5.3 percent in July. Economists had expected inflation to ease sharply to 1.6 percent.
The benchmark DAX was down 28 points, or 0.2 percent, at 12,77 after rising half a percent the previous day.
Banks traded higher, with Commerzbank rising more than 2 percent on expectations that it would benefit from a high interest-rate environment.
Ailing gas importer Uniper tumbled 3.4 percent, drug maker Evotec plunged 5 percent and TUI AG, a leisure, travel, and tourism company, fell 2.4 percent.
Henkel AG & Co. KGaA was moving lower despite the chemical and consumer goods firm raising its sales outlook for fiscal 2022.
Wind turbine maker Nordex AG declined 1.7 percent. The company has bagged an order for 31.5 MW wind turbines from its regular customer wpd, a developer and operator wind farms and solar parks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.