The DAX has posted considerable gains in the Monday session. Currently, the index is at 12,078, up 0.56% on the day. On the release front, there are no German or eurozone events. On Tuesday, Germany releases Ifo Business Climate.

The votes have been tallied in the European parliamentary elections, as over 200 million voters went to the polls in 28 EU countries, including the U.K. The results were dramatic, as far-right parties across Europe made gains, at the expense of centrist parties. In France, Marine Le Pen’s National Rally party came in first, handing a stinging defeat to President Macron. In Germany, Chancellor Angela Merkel’s conservatives lost ground, and voters in the U.K sent a strong message to Labor and the Conservatives, as Nigel Farage’s Brexit party won the most seats. The ramifications are already being felt, as Greek Prime Minister Alexis Tsipras has called a general election after his Syriza party fared poorly in the EU elections. The euro has not shown much movement on Monday, but could face headwinds as investors digest the results.

Trade tensions between the U.S. and China escalated last week, which soured risk appetite. On Thursday, the DAX plunged 1.8%, its sharpest one-day drop since early February. A trade deal between the two super-economies has not materialized, despite assurances from U.S. officials that substantial progress has been made. China has reacted angrily to U.S. sanctions on Huawei and has suspended trade talks with the U.S. Although negotiations will likely resume at some point, risk apprehension remains high, and this could lead to further headwinds for the DAX.

Markets in holiday mood

MEU elections not so bad for EUR or GBP

 

Economic Calendar

Monday (May 27)

  • There are no events on the schedule

Tuesday (May 28)

  • 2:00 German GfK Consumer Climate. Estimate 10.4

Germany

Previous Close: 12,011 Open: 12,082 Low: 12,050 High: 12,122 Close: 12,078

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 OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD climbs to daily highs near 1.1180 following the Fed’s decision

EUR/USD climbs to daily highs near 1.1180 following the Fed’s decision

EUR/USD now picks up extra pace and revisits the 1.1180 region after the Federal Reserve decided to cut its interest rates by 50 bps at its event on Wednesday.

EUR/USD News
GBP/USD hits fresh tops near 1.3300 on weaker Dollar

GBP/USD hits fresh tops near 1.3300 on weaker Dollar

The Greenback is now accelerating its decline following the Fed’s decision to reduce its interest rates, sending GBP/USD to fresh tops in the 1.3290 zone.

GBP/USD News
Gold clinches a record high near $2,600 ahead of Powell

Gold clinches a record high near $2,600 ahead of Powell

Prices of Gold gather extra steam and hit an all-time top near the $2,600 mark per ounce troy as investors continue to assess the 50 bps rate cut by the Federal Reseve and warm up for the usual press conference by Chief Jerome Powell.

Gold News
Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut

Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut

The Federal Reserve is widely expected to lower the policy rate after the September meeting. The revised Summary of Economic Projections and Fed Chairman Powell’s remarks could provide important clues about the rate outlook.

Read more
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures