DAX dips, German CPI ahead

The DAX has dropped considerably in the Wednesday session. Currently, the DAX is at 11,511 down 0.56% on the day. In economic news, there are no major German or eurozone events. On Thursday, Germany releases Preliminary CPI.

Risk appetite remains strong, and the DAX has responded well. On Tuesday, the DAX climbed to 11,556, its highest level since early December. With President Trump waiving his threat to impose new tariffs on China next week, risk appetite remains strong. There is even talk of a meeting between Trump and Chinese President Xi at the end of March if the sides reach an agreement. However, significant questions remain. With almost no news about the substance of the talks, it remains unclear if China will agree to substantial structural changes in trade, as demanded by the United States. Another question mark is whether the current set of tariffs will be completely removed if a deal is reached. Still, if the sides reach a deal, it could fuel a strong rally in global stock markets. Meanwhile, Trump is meeting with North Korean leader Kim in Hanoi, and any tangible steps to denuclearize North Korea could trigger strong gains for equities.

Sterling surges ahead of Brexit vote

Dollar weakens following Powell; Oil to struggle as OPEC + compliance comes into question

Dollar’s Slippery Slope

Economic Calendar

Wednesday (February 27)

• 4:00 Eurozone M3 Money Supply. Estimate 4.0%. Actual 3.8%
• 4:00 Eurozone Private Loans. Estimate 3.4%. Actual 3.2%
• 5:00 German Buba President Weidmann Speaks
• 10:00 US Fed Chair Powell Testifies

Thursday (February 28)

• All Day – German Preliminary CPI. Estimate 0.5%
• 8:30 US Advance GDP. Estimate 2.6%

*All release times are DST

*Key events are in bold

DAX, Wednesday, February 27 at 6:55 EST

Previous Close: 11,540 Open: 11,496 Low: 11,441 High: 11,442 Close: 11,511

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.