DAX starts week with sharp losses on trade tensions

The sharp swings continue for the DAX index, as the volatility continues in the global equity markets. Currently, the DAX is at 12,091, down 1.20%. There are no major German or European events on the schedule. German PPI gained 0.5%, following two successive declines. Later in the day, eurozone trade balance is expected to show a surplus of EUR 24.2 billion, down from EUR 26.8 billion a month earlier. On Tuesday, the eurozone releases consumer confidence.

The DAX index posted strong gains last week, climbing 1.49%. However, the index has reversed directions on Monday and posted sharp losses. Risk appetite soured on Friday, after President Trump issued an executive order to blacklist Huawei, a Chinese telecom company. Last week, Trump issued a moratorium on tariffs against European automakers, but investors remain wary. German automaker listings have posted sharp losses on Monday – BMW is down 2.03%, Daimler has fallen 1.60% and Volkswagen has declined 1.22%. With U.S.-China talks on hold, traders should be prepared for more swings this week. 

Australian & Indian Election results provide risk-on flows on mixed Asian open

Economic Calendar

Monday (May 20)

• 2:00 German PPI. Estimate 0.4%. Actual 0.5%
• 4:00 German Current Account. Estimate 24.2B
• 6:00 German Buba Monthly Report

Tuesday (May 21)

• 10:00 Eurozone Consumer Confidence. Estimate -8

*All release times are DST

*Key events are in bold

DAX, Monday, May 20 at 6:45 DST

Previous Close: 12,238 Open: 12,219 Low: 12,078 High: 12,247 Close: 12,091

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