oanda_logo
  • Sign in
  • Open an account

Sign in

Select account:

  • Currency converter
    • Converter
    • Tools
    • Mobile
    • Live rates
    • Historical rates
    • Embed converter
    • Help
  • FX Data Services
    • FX Data Services overview
    • Exchange Rates API
    • Corporate FX transfers
    • Historical currency converter
    • Contact us
    • Blog
  • OANDA Group
    • About OANDA
    • Media centre
    • Careers
Logotype
The Beat of the Global Markets
  • Home
  • News Events
    • Brexit
    • COVID-19
    • Earnings season
    • Non-farm payrolls
    • Trade war
    • US election
  • Markets
    • FX
    • Indices
    • Commodities
    • Crypto
  • Multimedia
    • Podcasts
    • Videos
  • Economic calendar
  • Analysts
Home/FX/Indices/Newsfeed

DAX Slips as Trump Crisis Spooks Markets

May 18, 2017 Share Print 0

The DAX index has posted slight losses in the Thursday session, dropping 0.80 percent. Currently, the DAX is trading at 12,536.25. On the economic front, there are no German or eurozone events on the schedule. The president of the ECB, Mario Draghi, will speak at an event at the University of Tel Aviv. On Friday, German releases PPI, while the eurozone publishes current account and consumer confidence.

World stock markets continue to lose ground due to the political turmoil which has gripped Washington. The latest development is that the Justice Department has agreed to appoint a former FBI director as independent counsel to investigate possible Russian involvement in the US presidential election as well as any connection between Trump and the Russians during the election campaign. On Tuesday, media reports surfaced that Trump asked former FBI director James Comey to end an investigation into ties between Russia and Trump’s former security adviser, Michael Flynn. Adding to Trump’s troubles, the president is under fire for passing classified intelligence to the Russian foreign minister. Trump initially denied the claim, but has since admitted that he did share intelligence with the Russians, arguing that he had acted within his rights. With the Trump administration frantically trying to douse political fires, investors are growing increasingly nervous that Trump’s plans for a stimulus package and tax reform will stall, and these jitters have sent stock markets downwards.

Almost forgotten amidst the unfolding developments in Washington are strong consumer inflation and spending numbers in the eurozone. Final CPI for April matched the forecast with a strong gain of 1.9% in April, considerably higher than last month’s gain of 1.5%. Eurozone inflation is closing in on the ECB’s target of 2.0%, which could increase pressure on the ECB to consider tapering its ultra-loose monetary policy. Germany, for example, is complaining that ultra-low interest rates are not suitable for its economy, which has been growing at a faster rate than the rest of the euro-area. German officials continue to call on the ECB to adopt a tighter monetary policy. On Tuesday, Eurozone Flash GDP for the first quarter was unrevised from the April forecast, posting a gain of 0.5% in the first quarter. The eurozone continues to show improved numbers in 2017, boosted in no small part by the German economy, which expanded 0.6% in the first quarter.

Political Uncertainty Roils Global Markets

Economic Calendar

Thursday (May 18)

  • 13:00 ECB President Mario Draghi Speaks

Friday (May 19)

  • 2:00 German PPI. Estimate 0.2%
  • 4:00 Eurozone Current Account. Estimate 32.3B
  • 10:00 Eurozone Consumer Confidence. Estimate -3

*All release times are EDT

*Key events are in bold

DAX, Thursday, May 18 at 8:10 EDT

Open: 12,632.00 High: 12,637.50 Low: 12,493.75 Close: 12,536.25

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

  • Bio
  • Google+
  • Latest Posts
Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.
Kenny Fisher

+Kenny Fisher

Kenny Fisher

Latest posts by Kenny Fisher (see all)

  • Australian dollar flirting with 80 - 02/25/2021
  • NZ dollar pauses after huge gains - 02/25/2021
  • Australian dollar flat - 02/24/2021
DAX, DAX 30, DE 30, ECB President Mario Draghi, EUR, Eurozone Consumer Confidence, Eurozone Current Account, FX, German PPI
Back to Top
Subscribe
Subscribe form
Week ahead
Week Ahead – Powell to the rescue
Posted by Craig Erlam Feb 19, 2021
FX
Australian dollar flirting with 80
Posted by Kenny Fisher Posted 1 hour ago
US dollar on defensive after Powell
Posted by Jeffrey Halley Posted 6 hours ago
Australian dollar flat
Posted by Kenny Fisher Feb 24, 2021
Indices
Asia follows Wall Street with strong gains
Posted by Jeffrey Halley Posted 6 hours ago
Asia equities mixed after Powell
Posted by Jeffrey Halley Feb 24, 2021
Asian markets up despite Wall Street retreat
Posted by Jeffrey Halley Feb 23, 2021
Commodities
Gold – Higher yields weigh heavily
Posted by Craig Erlam Posted 22 minutes ago
Brent crude – Looking overextended
Posted by Craig Erlam Posted 3 hours ago
Oil edges up, gold slips on higher yields
Posted by Craig Erlam Posted 4 hours ago
Crypto
Commodities and Cryptos: Winter Freeze pumps oil, Gold’s d...
Posted by Ed Moya Feb 16, 2021
Commodities and Cryptos: Crude’s upbeat demand outlook, Go...
Posted by Ed Moya Feb 12, 2021
Bitcoin aiming high
Posted by Craig Erlam Feb 12, 2021
Follow us
  • RSS
  • Facebook
  • Twitter
  • Google

Logotype

MarketPulse provides up-to-the-minute analysis on forex, commodities and indices from around the world.

  • OANDA Group
  • FX Data Services
  • Currency conversion
  • News events
  • Markets
  • Economic calendar
  • About MarketPulse
  • Terms of use
  • Site map
MarketPulse is an award-winning news site that delivers round-the-clock commentary on a wide range of asset classes, as well as in-depth insights into the major economic trends and events that impact the markets. The content produced on this site is for general information purposes only and should not be construed to be advice, invitation, inducement, offer, recommendation or solicitation for investment or disinvestment in any financial instrument. Opinions expressed herein are those of the authors and not necessarily those of OANDA or any of its affiliates, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, please access the RSS feed or contact us at info@marketpulse.com © 2020 OANDA Business Information & Services Inc.