DAX jumps as German exports rebound, Thyssenkrupp soars

The volatility continues for the DAX, which has been marked by wild swings throughout the week. The index is up 0.69% on Friday, after sliding 1.7% on Thursday. Currently, the DAX is at 12,057 points.

In economic news, Germany’s trade surplus widened to EUR 20.0 billion in March, up from EUR 18.7 billion a month earlier. This is the first time that the trade surplus has exceeded the EUR 20-billion level since May. A surge in exports was responsible for the larger trade surplus. German exports increased by 1.5% in March, well above the estimate of -0.3%. This was a marked improvement from February, when exports declined by 1.3%.

The DAX has also received a boost from Thyssenkrupp, which has jumped 17.5% on Friday. The stock soared after the company said it was abandoning plans to split into two separate divisions. Investors cheered this announcement, but the stock has a long way to recover, having fallen over 40% in the past year.

After recording weekly gains for seven straight weeks, the DAX has hit a brick wall. The index has fallen 2.9% this week, as escalating trade tensions between China and the U.S. have rocked the equity markets. The U.S. slapped new tariffs on China at midnight on Thursday, raising the tariffs on some $200 billion in Chinese goods from 10% to 25%. Trump announced the new measure on Sunday and global equity markets have been in flux the entire week, as risk appetite has waned. There had been hopes that the unpredictable U.S. president would change his mind ahead of the midnight Thursday deadline, but those hopes were dashed. China has promised retaliatory measures against the U.S. move. Despite these tensions, a high-level Chinese delegation is in Washington to continue the trade talks, and the markets are hoping that cooler heads prevail and a trade agreement between the two largest economies in the world is not far off.

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Economic Calendar

Friday (May 10)

• 2:00 German Trade Balance. Estimate 19.4B. Actual 20.0B

*All release times are DST

*Key events are in bold

DAX, Friday, May 10 at 8:50 DST

Previous Close: 11,973 Open: 12,099 Low: 12,032 High: 12,138 Close: 12,057

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