DAX Edges Higher as German Industrial Production Jumps

The DAX has posted slight gains in the Tuesday session. Currently, the index is at 13,380.00, up 0.10% on the day. On the release front, German Industrial Production rebounded with a sharp gain of 3.4%, above the estimate of 1.9%. Germany’s trade surplus widened to EUR 22.3 billion, beating the forecast of EUR 20.7 billion. The eurozone unemployment rate ticked down to 8.7%, matching the forecast.

World stock markets have been pointing upwards early in the New Year, and the DAX has also looked sharp, climbing 3.8% in January. Led by a robust German economy, the eurozone is on track for a strong fourth quarter, as the economy continues to expand and unemployment falls. Inflation has also moved higher, although the ECB is unlikely to reconsider its current stimulus program, which ends in September. One area of concern is the political vacuum in Germany. President Angela Merkel is running a caretaker government, as she has been unable to form a coalition, following the September elections. Merkel is now looking at the Social Democrats to help her make a new government, and preliminary talks are scheduled to begin on Sunday. The negotiations are moving slowly, and are likely to continue for several more months.

German indicators looked sharp on Tuesday. Industrial Production jumped 3.2%, after two consecutive declines. This marked only the second gain since July. Germany’s trade surplus climbed to EUR 22.3 billion in December, its highest surplus since May 2016. December indicators have pointed upward, including manufacturing and services PMIs, retail sales, and employment data. However, the political landscape in the eurozone’s largest economy remains cloudy. President Angela Merkel is now looking at the Social Democrats to help her make a new government, and preliminary talks are underway. The negotiations are likely to be lengthy, and the current caretaker government could remain in office for several more months.


Economic Calendar

Tuesday (January 9)

  • 2:00 German Industrial Production. Estimate 1.9%. Actual 3.4%
  • 2:00 German Trade Balance. Estimate 20.7B. Actual 22.3B
  • 5:00 Eurozone Unemployment Rate. Estimate 8.7%. Actual 8.7%

*All release times are GMT

*Key events are in bold


DAX, Tuesday, January 9 at 6:25 EDT

Open: 13,378.50 High: 13,414.50 Low: 13,374.00 Close: 13,380.00

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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