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

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.