DAX steady on solid Chinese trade surplus
|The DAX index has posted small gains on Monday. Currently, the DAX is at 12,019, up 0.16% on the day. In economic news, there are no major German or eurozone events. On Tuesday, Germany releases ZEW Economic Sentiment, with a forecast of 0.9 points.
With a light data calendar on Monday, investors will be keeping a close eye on German ZEW economic sentiment, a key gauge of investor confidence. The well-respected indicator has been mired in negative territory for the past 12 months, but the scores have been improving. The April estimate stands at 0..9, which although not a strong gain, is symbolic for being in positive territory. The all-eurozone indicator has shown a similar trend, and improved in March to -2.5 points. The April estimate stands at 1.2 points.
The economic slowdown in China has rocked equity markets worldwide, but there are signs that the world’s second largest economy is moving upwards. There was relief on the weekend, as China’s trade surplus surged to USD 32.64 billion. Last week, Chinese CPI posted a gain of 2.3%, its best gain in 5 months. A key test is on Tuesday, with the release of Chinese GDP. Third-quarter growth edged lower to 6.4%, and the estimate for Q4 stands at 6.3%. Although these are very strong growth rates, the downward trend has investors worried, and a weak GDP reading could send equities lower.
Economic Calendar
Monday (April 15)
- 6:00 German Buba Monthly Report
Tuesday (April 16)
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5:00 German ZEW Economic Sentiment. Estimate 0.9
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5:00 Eurozone ZEW Economic Sentiment. Estimate 1.2
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