The DAX has ticked lower on Monday, after sliding 2.2% on Friday. Currently, the DAX is at 11,353, down 0.09% on the day. On the release front, German Ifo Business Climate rebounded in March, rising to 99.6 points. This marked a 3-month high. On Tuesday, Germany releases consumer confidence.
European markets took a plunge on Friday, with the DAX recording its steepest decline since early February. Investors reacted with a thumbs-down after German and eurozone manufacturing PMIs slipped in March and continued to point to contraction. No less worrying, both PMIs have been slowing for months, as the global trade war continues to damage the eurozone and German manufacturing sectors.
German business confidence rebounded in March by more than expected, boosting the euro on Monday. The markets have been accustomed to releases above the 100-level, and the February reading of 98.5 was the weakest since November 2014. The survey noted that any improvement was confined to domestic sectors, such as construction and retail services. The manufacturing sector remains weak, battered down by the ongoing global trade war, which has dampened the appetite for German exports, such as vehicles and auto parts. Germany’s economy slowed down in the fourth quarter, and this bodes poorly for the rest of the eurozone.
Economic Calendar
Monday (March 28)
- 5:00 German Ifo Business Climate. Estimate 98.7. Actual 99.6
Tuesday (March 29)
- 3:00 German GfK Consumer Climate. Estimate 10.8
*All release times are DST
*Key events are in bold
DAX, Monday, March 25 at 7:15 EST
Previous Close: 11,364 Open: 11,315 Low: 11,311 High: 11,390 Close: 11,353