The DAX index has posted losses in the Tuesday session. Currently, the DAX is trading at 11,328, down 0.47% on the day. On the release front, there are no German or eurozone events. On Wednesday, Germany releases GfK consumer sentiment and the U.S. publishes Preliminary GDP for the third quarter.
Investors are keeping an eye of the G-20 summit in Argentina, which begins on Friday. President Trump will meet with Chinese President Xi Jinping, and the stakes could not be higher, given the full-blown trade war between the world’s two largest economies. Will we see a thaw in the tariff spat, or will Trump and Xi take shots at each other’s policies? Last week, White House advisor Larry Kudlow warned that the summit could be the scene of a direct confrontation between the parties. However, President Trump has a knack of reaching agreements with his adversaries despite hostile rhetoric, so it’s entirely possible that the parties will agree to keep negotiating, which could lift the mood of investors and boost the equity markets.
Brexit was in the spotlight on the weekend, as the 27 EU leaders approved the withdrawal agreement as well as the political declaration on economic relations between Britain and the EU after Brexit. The European leaders were in a surly mood, taking pains to warn Britain not to try to squeeze more concessions out of the EU. Dutch Prime Minister Mark Rutte summed up the European position, declaring “there is no Plan B”. The EU has signaled that the deal signed on Sunday is “take it or leave it” – if the U.K. doesn’t sign on, the result will be a no-deal “brutal Brexit”, which could be catastrophic for the British economy.
Economic Calendar
Tuesday (November 27)
- There are no German or eurozone events
Wednesday (November 28)
- 7:00 German GfK Consumer Climate. Estimate 10.5
- 8:30 US Preliminary GDP. Estimate 3.6%
*All release times are DST
*Key events are in bold
DAX, Tuesday, November 27 at 7:05 EST
Open: 11,380 Low: 11,303 High: 11,400 Close: 11,328