The DAX has posted sharp losses on Wednesday. Currently, the DAX is at 11,619, down 1.43% on the day. In economic news, German PPI declined by 0.1%, shy of the estimate of 0.2%. This marked the second decline in three months. All eyes are on the Federal Reserve, which will release its monthly rate statement.
It’s been a roller-coaster week for the DAX. The index jumped over 1 percent on Tuesday and climbed to its highest level since October. However, the DAX has reversed directions on Wednesday and surrendered all of these gains. Asian and European markets are down, as investors have engaged in profit taking and squaring positions ahead of the Federal Reserve statement. On the DAX, Bayer AG (DE:BAYGN) has plunged 12.4 percent on the day, after a U.S. jury found that its weedkiller Roundup causes cancer. Banking and automaker shares are also down sharply. BMW (DE:BMWG) has fallen 5.0 percent, with Volkswagen (DE:VOWG_p) and Daimler (DE:DAIGn) declining over 2 percent. Deutsche Bank (DE:DBKGn) is down 2.9 percent.
European leaders will meet in Brussels on Thursday, where Prime Minister May will request an extension for Brexit. The Europeans are exasperated by turmoil surrounding Brexit and the inability of the British government to pass the withdrawal agreement in parliament. On Tuesday, May was forced to shelve a vote on the deal, after House Speaker John Bercow ruled that the government could not bring the agreement to a vote, unless it was substantially different than the text that had already been voted on twice. This ruling is another blow to Prime Minister May, whose authority has been badly shaken by the recent votes in parliament. Jean-Claude Juncker, president of the European Commission, said on Wednesday that the E.U. would not provide May with an answer right away and would meet for consultations next week. The clock is ticking, with Britain scheduled to leave the E.U. on March 29.
Economic Calendar
Wednesday (March 20)
- 3:00 German PPI. Estimate 0.2%. Actual -0.1%
- 14:00 US FOMC Economic Projections
- 14:00 US FOMC Statement
- 14:00 US Federal Funds Rate. Estimate
- 14:00 US FOMC Press Conference
Thursday (March 21)
- All Day – EU Economic Summit
*All release times are DST
*Key events are in bold
DAX, Wednesday, March 20 at 8:50 EST
Previous Close: 11,788 Open: 11,709 Low: 11,613 High: 11,722 Close: 11,619