DAX ticks higher, Eurozone and Germany post solid numbers

The DAX index is unchanged on Tuesday, after a quiet start to the week. Currently, the DAX is at 12,328, down 0.03% on the day. In economic news, it’s a busy day. German GfK consumer climate remained pegged at 10.4, just above the forecast of 10.3 points. Investors will be keeping a keen eye on German CPI, with an estimate of 0.5%, and eurozone Flash GDP, which is expected to rise slightly to 0.3%.

On the employment front, there were solid April numbers out of Germany and the eurozone. German unemployment change came in at -12 thousand, beating the estimate of -6 thousand. In the eurozone, the unemployment rate dropped to 7.7%, its lowest level since 2008. There was more positive news out of Spain, the eurozone’s fourth-largest economy. The economy grew by 0.7% in Q1, unchanged from the previous quarter. Inflation improved to 1.5% in April, marking a 5-month high.

Is a U.S-China trade deal imminent? Negotiations will continue on April 30, in Beijing, and U.S. Treasury Secretary Mnuchin waxed positive on Sunday, saying that the talks were in their “final laps”. However, Mnuchin cautioned that the talks could still end without an agreement. The nasty trade war between the two largest economies in the world has rocked the global economy and curbed growth. If the sides can hammer out an agreement, investor risk appetite would likely soar and boost equity markets.

Asia learns its Alphabet

Is the U.S dollar losing love?

Economic Calendar

Tuesday (April 30)

  • 2:00 German GfK Consumer Climate. Estimate 10.3. Actual 10.4
  • 2:00 German Import Prices. Estimate 0.3%. Actual 0.0%
  • All Day – German Preliminary CPI. Estimate 0.5%
  • 3:55 German Unemployment Change. Estimate -6K. Actual -12K
  • 5:00 Eurozone Preliminary Flash GDP. Estimate 0.3%. Actual 0.4%
  • 5:00 Eurozone Unemployment Rate. Estimate 7.8%. Actual 7.7%

Wednesday (May 1)

  • 14:00 US FOMC Statement
  • 14:00 US Federal Funds Rate. Estimate <2.50%
  • 14:00 FOMC Press Conference

*All release times are DST

*Key events are in bold

DAX, Tuesday, April 30 at 8:00 DST

Previous Close: 12,328 Open: 12,300 Low: 12,297 High: 12,336 Close: 12,328

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

Market Analyst at OANDA
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

Latest posts by Kenny Fisher (see all)