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DAX climbs sharply after U.S election

The DAX index has jumped in the Wednesday session. Currently, the DAX is trading at 11,606, up 1.07% on the day. On the release front, German industrial production posted a gain of 0.2%, above the estimate of 0.0%. Eurozone retail sales improved to 0.0%, shy of the estimate of 0.1%. On Thursday, Germany releases trade balance and the eurozone publishes its economic forecasts.

European markets have posted gains on Wednesday, as investors expressed relief that the mid-term election uncertainty is over and the slugfest ended up as a split-decision. Had the Democrats taken back both houses of Congress, Trump would have been a lame duck for the next two years, and he would have had great difficulty passing any further market-friendly reforms. After a rough October for the DAX, investors are hoping that the positive start to November continues.

All eyes were on the U.S mid-term elections, and when the dust settled, both parties could claim a victory of sorts. The Democrats regained control of the House of Representatives for the first time since 2010, but the Republicans maintained control of the Senate, and have increased their majority. The results are a setback for President Trump, as the Democrats will be in a stronger position to derail Trump’s plans to boost fiscal stimulus and lower taxes. Investors have reacted on Wednesday by sending the dollar lower. Investors will be shifting focus to the Federal Reserve, which releases its monthly rate statement on Thursday. The Fed is expected to maintain the benchmark rate at a range of between 2.0% and 2.25%. A hawkish rate statement could boost global equity markets.

Commodities Weekly: Oil near 7-month lows on Iran waivers [1]

Investors relieved as blue wave falls short [2]

Economic Calendar

Tuesday (November 6)

Wednesday (November 7)

*All release times are EST

*Key events are in bold

DAX, Wednesday, November 7 at 7:05 DST

Open: 11,484 Low: 11,515 High: 11,636 Close: 11,606

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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