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DAX dips as Italy delays budget, investors eye German CPI

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.

Euro tumbles on talk Italy to delay budget meeting [1]

Gold rises after limited impact from Fed hike [2]

Economic Calendar

Thursday (September 27)

Friday (September 28)

*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

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 [6]

Market Analyst at OANDA [7]
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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