(new: German inflation, closing prices, sector high since March)

FRANKFURT (dpa-AFX) - With the exception of Aroundtown, real estate stocks benefited from inflation data from Germany on Wednesday. A tailwind was provided by the fact that the rise in consumer prices slowed to 3.2 percent in November, the lowest level since June 2021. The resulting interest rate optimism boosted the sector, which had suffered greatly from the rapid rise in interest rates in 2022 in particular.

The Stoxx Europe Real Estate, one of the most sought-after European sub-indices, rose by 1.73% to 121.44 points. The recovery briefly took it to its highest level since March.

Among the individual stocks, the shares of Dax member Vonovia rose by 2.4 percent. LEG gained 2.7 percent in the MDax. Both are now up a good 18 percent for 2023, having lost up to 30 percent at the low for the year. Vonovia is currently at its highest level since February. In the SDax, Grand City Properties gained 1.1 percent on Wednesday.

Aroundtown, on the other hand, left trading 2.4 percent lower after presenting its nine-month figures. The shares had fallen by up to eleven percent over the course of the day. The commercial real estate specialist is deep in the red due to the weak environment.

The assumption that interest rates will soon fall again is gaining ground on both sides of the Atlantic. This was initially supported by statements from Christopher Waller, a member of the Fed's board of directors, who raised the possibility of interest rate cuts in the coming months. "The words of Fed President Jerome Powell will still be heard on Friday. But after Waller's speech, investors see their expectations confirmed that the next step will be a turnaround in monetary policy," said chief market analyst Jochen Stanzl of CMC Markets with regard to the Fed. The market is now expecting four small interest rate cuts in the US in 2024.

In Europe, investors' optimism had to do with the fact that inflation in Germany weakened much more than expected in November. At 3.2%, it reached its lowest level since June 2021. Investors therefore see their assumption that the European Central Bank will not make any further key rate cuts confirmed. "From the middle of next year, key interest rate cuts should be on the agenda again," wrote Robert Greil, chief strategist at private bank Merck Finck, on Wednesday.

Baader Bank analyst Andre Remke commented on the negative sector exception Aroundtown, stating that the Group's operating result (FFO) was somewhat weaker than he had expected. Analyst Charles Boissier from UBS also pointed out that management had adopted a cautious tone for the further development of the commercial real estate market./ck/he