DAX jumps as U.S stock markets advance

The DAX Index has posted sharp gains in the Friday session, recouping the losses seen on Thursday. Currently, the index is at 10,574, up 1.0 percent on the day. On the release front, Germany will publish Preliminary CPI, a key gauge of consumer inflation. The indicator slipped to 0.1% in November, but is expected to improve to 0.3% in December.

Global stock markets have taken investors on a roller coaster ride, which has helped boost the greenback as risk appetite has soured. Eurozone and German economic activity has been hampered by the global trade war, which has taken a bite out of the export sector and dampened consumer confidence. The massive volatility has left investors jittery and sent risk appetite sharply lower. As well, the Italian budget crisis and Brexit remain serious headaches for policymakers. With the global trade war in full force, traders can expect the volatility in the equity markets to continue into the New Year.

The sole eurozone indicator on Thursday was the monthly ECB economic calendar. The prognosis was pessimistic, with the bank projecting that global economic activity would soften in 2019. As for the eurozone, the report found that GDP increased by just 0.2% in the third quarter, after growth of 0.4% in the prior two quarters. If fourth-quarter numbers are soft, the DAX could face further headwinds.

Dow closes more than 250 points higher in wild session, erases 600-point drop

Battling the Ticker Tape

Economic Calendar

Friday (December 28)

  • All Day – German Preliminary CPI. Estimate 0.3%

*All release times are DST

*Key events are in bold

DAX, Friday, December 28 at 6:35 EST

Open: 10,607 Low: 10,635 High: 10,440 Close: 10,463

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

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.