DAX Moves Higher as Cyclicals Rebound

The DAX index has posted gains in the Thursday session. Currently, the DAX is at 13,047.00, up 0.46% since the end of Wednesday trade. On the release front, Final CPI gained 1.4% and Core Final CPI gained 0.9%, as both readings matched the forecasts. On Friday, ECB President Mario Draghi  and German Buba President Jens Weidmann speaks at Frankfurt European Banking Congress.

The DAX has rebounded on Thursday, after suffering strong losses over the past week. Cyclical stocks are in green territory. Financial stocks have moved higher, led by Commerzbank and Deutschebank, with gains of 1.90% and 2.13%, respectively. Auto and technology stocks are also higher on Thursday. The stronger euro and profit-taking has weighed on the European markets, and it remains to be seen whether the DAX has turned a corner and the upward direction will continue.

Central banks do their best to avoid causing market volatility, which requires clear communication with the public and the markets. However, with bank policymakers making public statements on a daily basis, differences in opinion on future monetary policy or quantitative easing are bound to come up, and this can lead to market movement. Early in the week, Fed Chair Janet Yellen and ECB Mario Draghi participated at an ECB event which focused on communication with the markets. Yellen acknowledged that the FOMC committee of 19 members posed problems, as members did not always speak with a unified voice. Yellen admitted that this problem would not be solved anytime soon, saying it was “a work in progress”. To be fair, this is also an issue for the ECB, as the markets have on occasion reacted to comments from individual policymakers.

 

Economic Calendar

Thursday (November 16)

  • 5:00 Eurozone Final CPI. Estimate 1.4%. Actual 1.4%
  • 5:00 Eurozone Final Core CPI. Estimate 0.9%. Actual 0.9%

Friday (November 17)

  • 3:30 ECB President Mario Draghi Speaks
  • 8:00 German Buba President Weidmann Speaks

*All release times are GMT

*Key events are in bold

 

DAX, Thursday, November 16 at 6:40 EDT

Open: 13,043.50 High: 13,073.00 Low: 13,006.00 Close: 13,047.00

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.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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