Automakers boost DAX, CAC after Michelin posts strong earnings

Kenny Fisher MarketPulse

The DAX index has steadied on Tuesday after sharp losses last week. On Monday the DAX is at 11,146, up 1.19%. The CAC index is at 5072, up 1.15%. There are no German or eurozone data releases on the schedule. On Wednesday, the eurozone releases industrial production.

After falling 2.45% last week, the DAX has clawed back and recovered most of these losses. On Tuesday, the DAX jumped courtesy of unexpectedly strong earnings at Michelin, the giant French tire maker. This triggered strong gains for European carmakers. Daimler has climbed 2.34% and Volkswagen is up 1.74%. On the CAC index, Michelin has soared 11.45% and Peugeot has climbed 2.99%.

Investors are keeping a nervous eye on recent data out of the eurozone and Germany, which has sent the euro reeling. Consumer data has sagged, with retail sales and inflation pointing lower. German manufacturing is also in trouble, with factory orders and industrial production recording declines. The global trade war has dampened the appetite for German and eurozone exports, which has weighed on the manufacturing sector. The U.S. poised to impose new tariffs on China on March 2 if a trade deal between the two countries is not reached. Although the sides are talking, there has been little sign of progress. If the tariffs are put in place, risk appetite could falter and send European equity markets lower.

Markets not keen on a deadlock holiday

Markets higher as deal agreed to prevent shutdown

3:20 German Buba President Weidmann Speaks
All Day – ECOFIN Meetings
5:00 Eurozone Industrial Production. Estimate- 0.4%

Previous Close: 11,014 Open: 11,127 Low: 10,115 High: 11,156 Close: 11,146

Author

Kenny Fisher

MarketPulse

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.

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