DAX Lower on Soft German Industrial Report, ECB Decision Next

The DAX has lost ground in the Thursday session, after strong gains on Wednesday. Currently, the DAX is trading at 12,205.00, down 0.33% since the Wednesday close. On the release front, German Factory Orders declined 3.9%, weaker than the estimate of -1.9%. This marked the steepest decline since January 2017. Later in the day, the ECB releases its rate decision, followed by a press conference with Mario Draghi.

Global stock markets have been volatile since last week, when 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. There was further drama on Wednesday, as Gary Cohn, Trump’s chief economic adviser, resigned. Cohn was a strong advocate of free trade, so his resignation could weaken opposition in the White House to the tariffs. Will Trump make good on his threat or back off? Until the situation is resolved, traders should be prepared for continuing volatility in the markets.

Uncertainty Lingers

ECB to Prepare Markets For End of QE

Economic Calendar

Thursday (March 8)

  • 2:00 German Factory Orders. Estimate -1.9%. Actual -3.9%
  • 7:45 ECB Minimum Bid Rate. Estimate 0.00%
  • 8:30 ECB Press Conference

Friday (March 9)

  • 2:00 German Industrial Production. Estimate 0.6%
  • 2:00 German Trade Balance. Estimate 21.1B
  • 8:30 US Average Hourly Earnings. Estimate 0.2%
  • 8:30 US Nonfarm Employment Change. Estimate 201K

*All release times are EST

*Key events are in bold

DAX,  Thursday, March 8 at 6:35 EDT

Prev. Close: 12,245.36  Open: 12,235.00 High: 12,267.50 Low: 12,176.63 Close: 12,205.00

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

Latest posts by Kenny Fisher (see all)