DAX strong despite weak leadership – What to expect from Germany
Important news for the week
- Tue, 21st, 14:30 CET CA Consumer price index.
German economy
Since Friedrich Merz has taken over the helm as chancellor in Germany the result has been mixed. Despite previously criticizing the Social Democratic party he had to build a coalition with them to rule the country. Yet Merz failed in increasing the competitiveness of the country in regards to high energy prices and other necessary reforms. Business are failing under the burden and jobs are being cut or entire companies move to foreign countries. According to business owners “minor corrections are not enough” as Germany’s economy, once a powerhouse in Europe, keeps shrinking. Meanwhile the war in the Ukraine has been unsolved, which does not help, either.
Market talk
The positive market sentiment seems to continue. The Nasdaq index has gotten another push yesterday and is currently trading near the highs above 25.200 points. A potential breakout to the upside might happen if the positive risk sentiment continues. The German DAX also looks set to push higher and also got a boost during yesterday’s trading. The Dollar remains on the edge, though. The positive momentum in the Greenback might continue and hence also eigh negatively on stocks. Some professional investors already flash warning signs as the markets continue to march higher.
Tendencies in the markets
- Equities positive, USD stronger, BTC negative, ETH negative, oil weaker, Silver sideways, Gold positive.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
