The DAX index has started the week with slight losses. Currently, the DAX is at 11,984, down 0.22% on the day. In economic news, there are no major indicators. Germany’s trade surplus widened to EUR 18.7 billion but missed the forecast of EUR 19.0 billion. The Eurozone Sentix Investor Confidence improved to -0.3, marking a four-month high.
It was an outstanding week for the DAX, which soared 4.2% last week and touched 6-month highs. Risk appetite has climbed, as the U.S. and China continue to move towards a trade agreement. There were reports last week that an agreement between the world’s two largest economies is 90% complete. The outstanding issues include enforcement mechanisms and the removal of trade tariffs. After 9 months of a grueling trade war, positive manufacturing data out of China has also improved investor confidence.
The eurozone economy continues to sputter, and it hasn’t helped that the German locomotive has also lost a gear. Germany’s manufacturing sector has been hit hard with the fallout of the nasty global trade war. This has dampened demand for German exports, such as vehicles and auto parts. German manufacturing PMI is showing contraction and factory orders have declined for four straight months. However, there was positive news on Friday, as German industrial production posted a strong gain of 0.7%, ending a streak of four successive declines. The improvement is a result of a surge in construction, but with demand from abroad remaining soft, the manufacturing sector is likely to face further headwinds.
Economic Calendar
Monday (April 8)
- 2:00 German Trade Balance. Estimate 19.0B. Actual 18.7B
- 4:30 Eurozone Sentix Investor Confidence. Estimate -1.7. Actual -0.3
*All release times are DST
*Key events are in bold
DAX, Monday, April 8 at 7:40 EST
Previous Close: 12,009 Open: 11,964 Low: 11,947 High: 11,998 Close: 11,980