DAX gains ground, punches past 12,000 level
The DAX index has posted sharp gains on Friday, continuing the upward movement which marked the past two sessions. Currently, the DAX is at 12,010, up 0.60% on the day. In economic news, there are no major German or eurozone events. The German wholesale price index remained steady in March, with a gain of 0.3%. Eurozone industrial production declined by 0.2%, above the estimate of -0.5%.
The DAX started the week with sharp losses, but reversed directions and has recouped most of these losses. Investor enthusiasm was not dampened by comments from Mario Draghi, after the ECB rate decision on Wednesday. Draghi acknowledged that eurozone economic data remains weak, particularly in the manufacturing sector. The economic outlook remains weak, with Draghi saying that “slower growth momentum is expected to extend into the current year”. At the same time, Draghi said that the likelihood of a recession remains low. On the inflation front, Draghi stated that interest rates will remain at current levels at least until the end of 2019 and possibly later.
Economic Calendar
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2:00 German WPI. Actual 0.3%
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5:00 Eurozone Industrial Production. Estimate -0.5%. Actual -0.2%
Previous Close: 11,935 Open: 11,925 Low: 11,889 High: 12,016 Close: 12,010
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.
