The DAX index has ticked lower in the Wednesday session. Currently, the DAX is trading at 11,558, down 0.18% on the day. On the release front, Germany’s trade surplus dropped to 17.6 billion, shy of the estimate of 18.2 billion. In the U.S., the Federal Reserve winds up its policy meeting and releases a policy statement.
Wall Street reacted with relief on Wednesday, after the conclusion of the U.S midterm elections. Major indices were up by about 2 percent, as the uncertainty over the election is over and the slugfest ended up as a split-decision. Had the Democrats taken back both houses of Congress, Trump would have been a lame duck for the next two years, and he would have had great difficulty passing any further market-friendly reforms. After a dismal October for global equity markets, investors are hoping that the positive start to November continues.
Are Rome and Brussels headed for a nasty collision? The crisis over the Italian budget shows no signs of easing anytime soon, and the fallout could weigh on the financial markets and on the euro, which is struggling to stay above the 1.14 level. The EU’s Economic Commissioner, Pierre Moscovici, has demanded that Rome revise its budget, which it says increases Italy’s debt and is in breach of EU rules. Moscovici has demanded a response from Rome by November 13 and has even threatened sanctions if the Italian government does not comply. On Wednesday, Italian Prime Minister Giuseppe Conte said that he had no intention of backing down over the budget. Italy is the third largest economy in the eurozone, and the financial markets and the euro could react negatively if Rome and Brussels cannot resolve the crisis.
ECB’s Draghi told Italy’s Tria to stick to fiscal discipline beyond EU rules
Commodities Weekly: Oil near 7-month lows on Iran waivers
Investors relieved as blue wave falls short
Economic Calendar
-
2:00 German Trade Balance. Estimate 18.2B. Actual 17.6B
-
4:00 ECB Economic Bulletin
-
5:00 EU Economic Forecasts
Previous Close: 11,579 Open: 11,631 Low: 11,540 High: 11,647 Close: 11,558
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
Editors’ Picks
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.