DAX surges as airline and bank stocks jump

The DAX index has climbed sharply in the Thursday session, after posting small gains on Wednesday. Currently, the DAX is trading at 11,519, up 0.88% on the day. There are no German or eurozone events on the schedule. On Friday, Germany and the eurozone release Manufacturing PMI reports.

Higher risk appetite has boosted the DAX on Thursday, which is currently at its highest level since October 22. Deutsche Bank has jumped 3.46%, and Lufthansa has recovered from a recent downturn, surging 6.76%. The DAX has started November with gains, after a dismal October, which was marked by weak growth and confidence indicators. The DAX plunged some 6.7% in October, skidding to its lowest levels since December 2016.

There was positive news on Wednesday, as eurozone inflation is expected to head higher in October. CPI Flash Estimate ticked higher from 2.1% to 2.2% and Core CPI Flash Estimate rose to 1.1%, up from 0.9%. Both of these readings matched the forecasts. The stronger inflation numbers back up ECB President Mario Draghi’s stance that inflation in showing a “relatively vigorous pick-up”. Higher oil prices are one reason behind stronger inflation numbers. Germany, the bellwether for the rest of the eurozone, is also experiencing higher inflation, which climbed 2.4% in October. Although inflation is on the move, growth in the eurozone has softened in the third quarter. Eurozone GDP posted a weak gain of 0.2% in the third quarter, down from the 0.4% gain in the second quarter. On an annualized basis, eurozone growth slipped to 1.7% in Q3, down from 2.1% in Q2. The situation in Germany is even worse, with the German central bank forecasting zero growth in the third quarter.

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Economic Calendar

Thursday (November 1)

  • There are no German or eurozone events

Friday (November 2)

  • 3:00 German Import Prices. Estimate 0.4%
  • 4:55 German Final Manufacturing PMI. Estimate 52.3
  • 5:00 Eurozone Final Manufacturing PMI. Estimate 52.1

*All release times are DST

*Key events are in bold

DAX, Thursday, November 1 at 7:30 DST

Open: 11,419 Low: 11,416 High: 11,575 Close: 11,519

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.
Kenny Fisher

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