The DAX is almost unchanged in the Friday session. Currently, the DAX is trading at 12,549.75, up 0.07% on the day. On the release front, the sole eurozone event was a disappointment, as the eurozone trade surplus narrowed to EUR 18.6 billion in July, well short of the estimate of EUR 20.1 billion. This marked the smallest trade surplus since February.
Risk appetite has returned to the stock markets, and barring an unexpected collapse on Friday, the DAX is headed for a second straight week of strong gains. Earlier in the week, the DAX climbed to 12,565 its highest level since July 21. European stock markets shrugged off events in the Korean peninsula, as North Korea fired a missile over Japan, which landed in the Pacific Ocean. Still, if the US decides to respond forcefully to the North Korean move, nervous investors could dump their stocks in favor of safe-haven assets such as the Japanese yen and gold.
Germans goes to the polls on September 24, and France is hoping that a widely expected Angela Merkel win could lead to a more unified eurozone. President Macron plans to unveil a proposal to reform the eurozone, which would include a eurozone finance minister that would be in charge of a eurozone budget. Macron’s call for greater cooperation is linked to Britain’s exit from the EU, which could lead to divisions among the remaining 27 members in the bloc. Macron’s ambitious plan will need Germany’s support before it can become a reality. Will Germany embrace the idea? Angela Merkel’s position has said she is open to the idea, but on Wednesday, Jean-Claude Juckner, head of the European Commission, dismissed the plan, saying he favored a finance minister for the EU but was against a separate eurozone budget and finance minister.
Friday (September 15)
- 5:00 Eurozone Trade Balance. Estimate 20.1B. Actual 18.6B
*All release times are EDT
*Key events are in bold
DAX, Friday, September 15 at 5:50 EDT
Open: 12,530.00 High: 12,563.50 Low: 12,523.50 Close: 12,549.75