DAX Ticks Higher as Eurozone GDP Stays Steady

The DAX is showing little movement in the Wednesday session. Currently, the DAX is trading at 12,097.08, up 0.10% since the Tuesday close. On the release front, Eurozone Revised GDP posted a gain of 0.6% for a fourth straight quarter. This matched the forecast. On Thursday, the ECB sets its benchmark rate, and the US will publish unemployment claims.

The ECB will be in focus on Thursday, as policymakers set the monthly benchmark rate. This will be followed by a press conference with Mario Draghi. The interest rate has been pegged at a flat 0.0% for the past two years, and no change is expected. The markets will be keeping a close eye on the language of the rate statement; in particular, whether the easing bias stance will be removed. If so, this would likely be interpreted as a plan to eventually tighten policy and would be bullish for the euro. Inflation remains weak, so there is little pressure on the ECB to tighten policy anytime soon. Recent indicators show that inflation in the eurozone is steady, but remains well below the ECB target of around 2 percent.

European stock markets have been turbulent since US President Trump stunned investors last week when he proposed stiff tariffs on steel imports, much to the consternation of the European Union and other US trading partners. Fears of a trade war sent the DAX sharply lower last week, with losses of 5.2%. The DAX has clawed back some of the losses this week, as Republican lawmakers, including House Speaker Paul Ryan, have come out strongly against the move. This has raised hopes that Trump will back down. However, the unpredictable president could barrel ahead and impose the tariffs, which would likely send global stock markets lower.

Cohn Shocker

Economic Calendar

Wednesday (March 7)

  • 5:00 Eurozone Revised GDP. Estimate 0.6%. Actual 0.6%

Thursday (March 8)

  • 2:00 German Factory Orders. Estimate -1.9%
  • 7:45 ECB Minimum Bid Rate. Estimate 0.00%
  • 8:30 ECB Press Conference

*All release times are EST

*Key events are in bold


DAX, Wednesday, March 7 at 7:00 EDT

Prev. Close: 12,113.87  Open: 12,058.00 High: 12,117.50 Low: 12,019.92 Close: 12,097.08

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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