The DAX continues to climb and is on track on to post an eighth straight winning session. In North American trade, the DAX is at 11,915, up 0.99% on the day. The DAX is on an impressive roll, soaring 4.6% since March 25. In economic news, the focus is on the service sector. German and eurozone services PMIs indicated expansion and beat their estimates. Eurozone retail sales slowed to 0.4%, but managed to beat the forecast of 0.2%. On Thursday, the ECB posts the minutes of its March meeting and the U.S. releases unemployment claims.
After disappointing manufacturing PMIs in March, there was better news from services PMI reports on Wednesday. German and eurozone indicators came in at 55.4, and 53.3, respectively. This points to expansion, in contrast to the manufacturing PMIs, which are showing contraction. Investors are also concerned that the manufacturing PMIs have been falling for months. This is largely due to the global trade war, which continues to dampen manufacturing activity in Germany and the rest of the eurozone.
Aside from the positive data on Wednesday, there is optimism with regard to the U.S-China trade talks. The sides are meeting today in Washington, and a trade agreement may be within reach. The outstanding issues include enforcement mechanisms and the removal of trade tariffs. The DAX has risen to its highest level since October 2018. Automaker shares are up strongly on Wednesday over the optimism over the trade talks. BMW and Volkswagen (DE:VOWG_p) have climbed around 2%, and Daimler has gained 1%.
Economic Calendar
Wednesday (April 3)
- 3:55 German Final Services PMI. Estimate 54.9. Actual 55.4
- 4:00 Eurozone Final Services PMI. Estimate 52.7. Actual 53.3
- 5:00 Eurozone Retail Sales. Estimate 0.2%. Actual 0.4%
Thursday (April 4)
- 2:00 German Factory Orders. Estimate 0.3%
- 7:30 ECB Monetary Policy Meeting Accounts
*All release times are DST
*Key events are in bold
DAX, Wednesday, April 3 at 7:50 EST
Previous Close: 11,751 Open: 11,855 Low: 11,848 High: 11,927 Close: 11,915