DAX edges higher as German retail sales beat expectations

The DAX index has edged higher on Friday. Currently, the DAX is trading at 11,463, up 0.32%. In economic news, German retail sales slowed to 0.9%, but beat the estimate of -1.0%. Unemployment claims fell by 7,000, shy of the estimate of 10,000. The unemployment rate for March dipped to 4.9% from 5.0%, the lowest level since reunification in 1990.

The DAX has posted gains this week, after sharp losses last week. The DAX fell 2.2% last Friday, after Germany posted a dismal manufacturing PMI. Manufacturing activity contracted for a third straight month, as the global trade war and damaging tariffs has reduced the appetite for German exports, particularly vehicles and auto parts. Investors are keeping a close eye on the ebb and flow of the U.S.-China trade talks, which continues to affect the markets. The negotiations between the sides continues and there have been reports of progress. However, optimism waned on Thursday, after a senior U.S. official said that it could be months before a deal is reached. As long as uncertainty continues to swirl around the talks, traders can expect swings in the stock markets.

A risk rally built on hope

Economic Calendar

Friday (March 29)

• 3:00 German Import Prices. Estimate 0.5%. Actual 0.3%
• 3:00 German Retail Sales. Estimate -1.0%. Actual 0.9%
  
• 4:55 German Unemployment Change. Estimate -10K

*All release times are DST

*Key events are in bold

DAX, Thursday, March 29 at 5:50 EST

Previous Close: 11,428 Open: 11,484 Low: 11,453 High: 11,505 Close: 11,463

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