DAX steady on solid Chinese trade surplus

The DAX index has posted small gains on Monday. Currently, the DAX is at 12,019, up 0.16% on the day. In economic news, there are no major German or eurozone events. On Tuesday, Germany releases ZEW Economic Sentiment, with a forecast of 0.9 points.

With a light data calendar on Monday, investors will be keeping a close eye on German ZEW economic sentiment, a key gauge of investor confidence. The well-respected indicator has been mired in negative territory for the past 12 months, but the scores have been improving. The April estimate stands at 0..9, which although not a strong gain, is symbolic for being in positive territory. The all-eurozone indicator has shown a similar trend, and improved in March to -2.5 points. The April estimate stands at 1.2 points.

The economic slowdown in China has rocked equity markets worldwide, but there are signs that the world’s second largest economy is moving upwards. There was relief on the weekend, as China’s trade surplus surged to USD 32.64 billion. Last week, Chinese CPI posted a gain of 2.3%, its best gain in 5 months. A key test is on Tuesday, with the release of Chinese GDP. Third-quarter growth edged lower to 6.4%, and the estimate for Q4 stands at 6.3%. Although these are very strong growth rates, the downward trend has investors worried, and a weak GDP reading could send equities lower.

Collective sighs of relief

Economic Calendar

Monday (April 15)

  • 6:00 German Buba Monthly Report

Tuesday (April 16)

  • 5:00 German ZEW Economic Sentiment. Estimate 0.9
  • 5:00 Eurozone ZEW Economic Sentiment. Estimate 1.2

*All release times are DST

*Key events are in bold

DAX, Monday, April 15 at 7:40 EST

Previous Close: 11,999 Open: 12,001 Low: 11,984 High: 12,030 Close: 12,019

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.