The DAX index has posted slight losses in the Thursday session. Currently, the index is at 12,359, down 0.23% on the day. Today’s key release is Germany Preliminary CPI, which is expected to post a small gain of 0.1%. Later in the day, ECB President Mario Draghi will speak at a conference in Frankfurt. On Friday, Germany releases unemployment change and the eurozone publishes CPI Flash Estimate.
In its monthly economic bulletin, the ECB said that it expected global growth to slow in the near term and warned about the effects of the escalating global trade war. The report highlighted “further tariff increases and uncertainties about future trading relations” as factors which could dampen global growth. Still, with the eurozone economy performing fairly well, the ECB is on track to halve its monthly asset purchases to EUR 15 billion, and wind up the stimulus program in December. Earlier in the week, the ECB released a study which indicated that if the U.S-China trade spat continued, the U.S would be the big loser, as a result of a decrease in trade and weaker investor and consumer confidence.
European stock markets are under pressure on Thursday, after the Italian government announced a delay of the country’s budget. Investors have long been nervous about the populist government’s financial plans, as senior officials have previously declared that Italy could breach EU budget restraint rules, which could put Italy on a collision course with Brussels. Political uncertainty in Italy remains high, as there are fears that the coalition government could collapse when the budget bill comes up for a vote.
Thursday (September 27)
- 2:00 German GfK Consumer Climate. Estimate 10.6. Actual 10.6
- All Day – German Preliminary CPI. Estimate 0.1%
- 4:00 Eurozone M3 Money Supply. Estimate 3.8%. Actual 3.5%
- 4:00 ECB Economic Bulletin
- 4:00 Eurozone Private Loans. Estimate 3.1%. Actual 3.1%
- 9:30 ECB President Draghi Speaks
Friday (September 28)
- 3:55 German Unemployment Change. Estimate -9K
- 5:00 Eurozone CPI Flash Estimate. Estimate 2.1%
- 5:00 Eurozone Core CPI Flash Estimate. Estimate 1.1%
*All release times are DST
*Key events are in bold
DAX, Thursday, September 27 at 7:30 DST
Previous Close: 12,385 Open: 12,329 Low: 12,272 High: 12,379 Close: 12,376