DAX Steady as Investors Look for Cues

The DAX has posted slight gains and pushed above the symbolic 13,000 level in the Thursday session. Currently, the DAX is at 13,025, up 0.22% on the day. On the release front, there are no German or eurozone indicators on the schedule. On Friday, Germany releases inflation reports and the eurozone publishes current account and trade balance.

The eurozone economy has performed well in 2018, but inflation has lagged behind and remains well below the ECB inflation target of around 2 percent. German Final CPI for April dropped to a flat 0.0%. Although this matched the forecast, this marked a 3-month low. Eurozone inflation indicators followed a similar trend, losing ground in April. Final CPI edged lower to 1.2%, down from 1.3% a month earlier. Final Core CPI followed a similar trend, dropping from 1.0% to 0.7%. Weak inflation levels could have a significant impact on ECB fiscal policy, as policymakers may have to consider extending its stimulus scheme, which is scheduled to run until September.

The DAX hasn’t been making headlines, but the index continues to gain ground. The DAX touched the 1350 line earlier on Thursday, marking its highest level since late January. Investors continue to give a thumbs-up to the robust German economy, but there are some clouds on the horizon. A growing concern is the rising price of crude, which remains above the $70 level. Higher oil prices could trigger higher inflation and hamper economic growth, which could send the markets lower.

The trend is your friend.

Dollar Consolidates ahead of Today’s Event Risk

 

Economic Fundamentals

Thursday (May 17)

  • There are no Eurozone or German events

Friday (May 18)

  • 2:00 German PPI. Estimate 0.3%
  • 2:00 German WPI. Estimate 0.2%
  • 4:00 Eurozone Current Account. Estimate 35.1B
  • 5:00 Eurozone Trade Balance. Estimate 20.7B

*All release times are DST

*Key events are in bold

DAX, Thursday, May 17 at 7:00 DST

Prev. Close: 12,996 Open: 12,980 Low: 12,979 High: 13,050 Close: 13,029

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.