DAX rally continues as Trump suspends auto tariffs

The DAX started the week with sharp losses, but has rallied and is on its way to a third straight winning session. Currently, the DAX is at 12,189, up 0.74%. In economic news, there are no major German or eurozone events. The eurozone trade surplus narrowed to EUR 17.9 billion in March, down from 19.5 billion a month earlier. On Wednesday, the eurozone releases consumer spending reports.

Global equity markets continue to show strong movement, in response to breaking developments in the global trade war. The DAX plunged 1.5% on Monday, as China retaliated against the U.S. and slapped tariffs on $60 billion in U.S. products. However, the blue-chip DAX has been quick to recover, jumping 2.7% since Monday. Investors have regained risk appetite, as the trade talks between the U.S. and China have not been derailed, even with the latest tariff tussle. Investors had been worried that Trump might target European and Japanese vehicles with new tariffs, and this had triggered sharp losses for German automakers listed on the DAX, including BMW, Daimler and Volkswagen. There was relief on Thursday, after President Trump announced a 6-month delay on any car tariffs.

Aussie slides as Australia’s unemployment rate jumps

Equity markets embrace tariff delay

European update – Trump seeks to calm fears

Economic Calendar

Thursday (May 16)

  • 4:15 German Buba President Weidmann Speaks
  • 5:00 Eurozone Trade Balance. Estimate 19.0B. Actual 17.9B
  • All  Day – Eurogroup Meetings

Friday (May 17)

  • 5:00 Eurozone Final CPI. Estimate 1.7%
  • 5:00 Eurozone Final Core CPI. Estimate 1.2%

*All release times are DST

*Key events are in bold

DAX, Thursday, May 16 at 7:40 DST

Previous Close: 12,099 Open: 12,063 Low: 12,029 High: 12,204 Close: 12,189

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

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