The DAX index is showing little movement in the Wednesday session. Currently, the DAX is at 12,339, down 0.08% on the day. In economic news, German Services PMI improved to 54.5, beating the estimate of 53.9. Eurozone Services PMI rose to 55.2, above the forecast of 55.0 points. On Thursday, Germany releases Factory Orders and the eurozone releases Retail PMI.
Chancellor Angela Merkel is working overtime to save her coalition, and the latest crisis she is facing is over migration policy.
The DAX is coming off another rough week, in which it declined 1.5 percent. Recent trade tensions are threatening to hamper the eurozone export sector, which in turn could weigh on manufacturing output. Investors are keeping a close eye on German and eurozone manufacturing PMIs, which are bellwethers of the strength of the manufacturing sector. In June, the German and eurozone readings pointed to expansion but also continued a downward trend. Both PMIs have now dropped for six straight months, raising concerns among investors about the strength of the eurozone economy. Germany, the locomotive of the eurozone, produced soft consumer numbers last week. Retail Sales plunged 2.1%, its steepest decline in 2018. As well, Preliminary CPI fell to 0.1%, down from 0.5% a month earlier.
Wednesday (July 4)
- 3:15 Spanish Services PMI. Estimate 56.3. Actual 55.4
- 3:45 Italian Services PMI. Estimate 53.3. Actual 54.3
- 3:50 French Final Services PMI. Estimate 56.4. Actual 55.9
- 3:55 German Final Services PMI. Estimate 53.9. Actual 54.5
- 4:00 Eurozone Final Services PMI. Estimate 55.0. Actual 55.2
Thursday (July 5)
- 2:00 German Factory Orders. Estimate 1.1%
- 4:10 Eurozone Retail PMI
- 7:15 German Buba President Weidmann Speaks
- 8:15 US ADP Nonfarm Employment Change. Estimate 190K
- 8:30 US Unemployment Claims. Estimate 231K
- 10:00 US ISM Non-Manufacturing PMI. Estimate 58.3
- 14:00 US FOMC Meeting Minutes
*All release times are DST
*Key events are in bold
DAX, Wednesday, July 4 at 7:40 DST
Previous Close: 12,349 Open: 12,321 Low: 12,299 High: 12,351 Close: 12,339
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.