Breaking News
0

DAX Dips As Investors Eye ECB Rate Announcement

By Market Pulse (Kenny Fisher)Stock MarketsJun 14, 2018 07:33AM ET
www.investing.com/analysis/dax-dips-as-investors-eye-ecb-rate-annoucement-200324878
DAX Dips As Investors Eye ECB Rate Announcement
By Market Pulse (Kenny Fisher)   |  Jun 14, 2018 07:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The DAX index has posted losses in the Thursday session. Currently, the DAX is at 12,849, down 0.32% since the close on Wednesday. On the release front, German Final CPI climbed 0.5%, a 3-month high. This reading matched the forecast. Later in the day, the ECB winds up its policy meeting and will release a rate statement. On Friday, the eurozone releases Final CPI.

Investors were keeping a close eye on the Federal Reserve on Wednesday. As widely expected, the Federal Reserve raised interest rates by a quarter-point, to a range between 1.75 percent and 2.00 percent. Fed Chair Jerome Powell sounded hawkish in his press conference, saying that the economy was performing well and that “overall outlook for growth remains favorable.” This message echoed the rate statement, in which policymakers said that “economic activity has been rising at a solid rate,” pointing to stronger consumer spending and business investment. What was may have been the most notable development was that the Fed rate projections were revised upwards, predicting two additional rate hikes in 2018, for a total of four hikes. Until now, the Fed had projected three rate hikes this year. This represents a nod to the strength of the US economy and could boost the dollar against its rivals.

Fresh from the Fed’s rate hike, the markets will shift their focus to Frankfurt, where the ECB is holding its policy meeting. Will we see any clues with regard to the ECB’s asset-purchase program? Currently, the bank is purchasing EUR 30 billion/mth, and the scheme is scheduled to wind up in September. The eurozone economy hit some headwinds in the first quarter and the new populist government in Italy could pose a major headache for Brussels. This could mean that the ECB will phase out the stimulus program over several months, rather than turn off the tap completely in September. What is clear is that the ECB board members will conduct a detailed discussion about the fate of the stimulus package at this meeting. If ECB President Mario Draghi discusses any new developments regarding stimulus at his press conference, we could see some volatility from EUR/USD on Thursday.

Economic Calendar

Thursday (June 14)

  • 1:30 German Final CPI. Estimate 0.5%. Actual 0.5%
  • 7:45 Eurozone Main Refinancing Rate. Estimate 0.00%
  • 8:30 ECB Press Conference

Friday (June 15)

  • 2:00 German WPI. Estimate 0.3%
  • 5:00 Eurozone Final CPI. Estimate 1.9%
  • 5:00 Eurozone Final Core CPI. Estimate 1.1%

*All release times are DST

*Key events are in bold

DAX, Thursday, June 14 at 6:55 DST

Previous Close: 12,890 Open: 12,803 Low: 12,800 High: 12,874 Close: 12,849

Germany 30 for June 14, 2018
Germany 30 for June 14, 2018

Original post

DAX Dips As Investors Eye ECB Rate Announcement
 

Related Articles

DAX Dips As Investors Eye ECB Rate Announcement

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email