The DAX Index closed the week above the 12,000 level, but has dropped lower at the start of the new trading week. In the Monday session, The DAX is trading at 11,981.89 points. On the release front, Eurozone retail sales were stable in February, as Retail PMI came in at 49.1, down slightly from 50.1 a month earlier. Eurozone Sentix Investor Confidence report improved to 20.7, beating the estimate of 18.8 points. On Tuesday, Germany releases Factory Orders, with the markets bracing for a sharp decline of 2.5%.
European stocks are broadly lower in the Monday session, as a capital raise by Germany’s Deutsche Bank (DE:DBKGn) as reduced investors’ appetite for risk. The bank decided on a major reorganization on Sunday, which includes raising EUR 8 billion by issuing 687.5 million shares on March 21. Deutsche Bank has hit rough waters, and it seemed only a matter of time before it was forced took some drastic measures to right the boat. In December, the bank reached a $7.2 billion settlement with the U.S. Department of Justice for selling toxic mortgage-backed securities. Deutsche had a dismal 2016, with losses of EUR 1.4 billion. This capital hike is the fourth since 2010, and it remains to be seen if this move will attract investors and help set the bank in the right direction. Deutsche Bank shares are down about 1.0% on Monday, which has weighed on the DAX in the Monday session.
Economic Calendar
Monday (March 6)
- 4:10 Eurozone Retail PMI. Actual 49.9
- 4:30 Eurozone Sentix Investor Confidence. Estimate 18.8. Actual 20.7
- 10:00 US Factory Orders. Estimate 1.1%
- 15:00 US FOMC Member Neel Kashkari Speech
Tuesday (March 7)
- 2:00 German Factory Orders. Estimate -2.5%
*All release times are EST
*Key events are in bold
DAX for Monday, March 6, 2017
DAX, March 6 at 7:00 EST
Open: 11,960.25 High: 11,998.50 Low: 11,027.50 Close: 11,981.89