The DAX has posted gains on Thursday, after sharp losses on Wednesday. The index has declined 1.1% this week. Currently, the index is at 11,872, up 0.29% on the day. On the release front, there are no German or eurozone events. In the U.S., today’s highlight is second estimate GDP, with an estimate of 3.1%. On Friday, Germany releases retail sales and consumer inflation.
The weak global economy has dampened growth in Germany, although the largest economy in the eurozone is performing better than the rest of the bloc. Germany’s labor market has remained a bright spot, but there was negative news in April, as unemployment rolls ballooned by 60 thousand in May, surprising the markets. The indicator has recorded consecutive declines for almost two years, and the estimate stood at -8 thousand. The unemployment rate edged up to 5.0% in May, up from 4.9% in April. The Federal Labor Agency said that the weak numbers indicate “a weakening economy on unemployment”. Trade tensions have hurt the German manufacturing and export sectors, but a tight labor market has boosted consumer spending, a key driver of economic growth. If the employment market shows signs of weakness, the German economy could falter and drag the euro to lower levels.
Thursday (May 30)
- 8:30 US Preliminary GDP. Estimate 3.1%
Friday (May 31)
- 2:00 German Retail Sales. Estimate 0.4%
- 2:00 German Preliminary CPI. Estimate 0.3%
*All release times are DST
*Key events are in bold
DAX, Thursday, May 30 at 7:35 DST
Previous Close: 11,837 Open: 11,892 Low: 11,873 High: 11,918 Close: 11,872
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