DAX – Weak Q3 earnings weigh on DAX

The DAX index has posted sharp losses on Tuesday, after recording gains at the start of the week. In the North American session, the DAX is trading at 11,299, down 0.82% on the day. In economic news, Eurozone Preliminary Flash GDP dipped to 0.2%, shy of the estimate of 0.4%. Later in the day, Germany releases Preliminary CPI with an estimate of 0.1%.

It has been a brutal October for European stock markets, and the DAX has plunged 8.20% during this time. This marks the worst monthly slump since August 2015. On Friday, the DAX slipped to 11,051 points, its lowest level since December 2016. The DAX has slipped further on Tuesday, weighed down by profit reports in the third quarter. Lufthansa Airlines has plunged as much as 8.9% on Tuesday, while Beiersdorf has dropped 3.3 percent.

German Chancellor Angela Merkel said on Monday that she would not seek re-election as chair of the Christian Democrats. Merkel made the announcement after her party had a poor result in a regional election. The news sent the euro lower briefly and pushed German bond yields higher. Merkel said she will stay on as Chancellor until her term ends in 2021, but her announcement is another dent in the Iron Lady’s authority, which has diminished as her CDU party has slipped in popularity. Eurozone confidence indicators have looked sluggish recently, and Merkel’s decision to slowly wind up her political career will not help matters.

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Economic Calendar

Tuesday (October 30)

  • 2:30 French Flash GDP. Estimate 0.4%. Actual 0.4%
  • All Day – German Preliminary CPI. Estimate 0.1%
  • 3:45 French Consumer Spending. Estimate -0.4%. Actual -1.7%
  • 4:00 Spanish Flash CPI. Estimate 2.3%. Actual 2.3%
  • 4:55 German Unemployment Change. Estimate -12K. Actual -11K
  • 5:00 Italian Preliminary GDP. Estimate 0.2%. Actual 0.0%
  • 6:00 Eurozone Preliminary Flash GDP. Estimate 0.4%. Actual 0.2%
  • 6:14 Italian 10-year Bond Auction. Estimate 3.36/1.5
  • 9:00 US S&P/CS Composite-20 HPI. Estimate 6.0%
  • 10:00 US CB Consumer Confidence. Estimate 136.3

Wednesday (October 31)

  • 3:00 German Retail Sales. Estimate 0.5%
  • 6:00 Eurozone CPI Flash Estimate. Estimate 2.1%
  • 6:00 Eurozone Core CPI Flash Estimate. Estimate 1.0%
  • 8:15 US ADP Nonfarm Employment Change. Estimate 190K

*All release times are DST

*Key events are in bold

DAX, Tuesday, October 30 at 9:40 DST

Previous Close: 11,335 Open: 11,391 Low: 11,212 High: 11,394 Close: 11,299

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Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.