The DAX index has posted gains in the Tuesday session. Currently, the DAX is at 12,602, up 0.47% on the day. On the release front, On the release front, German ZEW Economic Sentiment dropped to -24.7, a sharper drop than expected. The forecast stood at -17.9 points. Eurozone ZEW Economic Sentiment followed a similar trend, dropping to -18.7 points. This reading was weaker than the estimate of -13.2 points.
The eurozone could be headed into headwinds in the second half of 2018, according to the well-respected ZEW Economic Sentiment indicators. The German and eurozone releases both dropped to their lowest levels since August 2012. The surveys indicate the views of financial experts, who are clearly concerned about economic sentiment. Internal divisions over migration and fears over a full-blown global trade war have investors worried that the eurozone outlook could worsen, which would likely send European equity markets to lower ground.
US employment data was a mix on Friday, as job growth remained above the 200-thousand level, but wage growth faltered. Nonfarm payrolls dropped to 213 thousand, but this beat the estimate of 195 thousand. Average Hourly Earnings edged lower to 0.2%, shy of the estimate of 0.3%. There was a surprise as the unemployment rate climbed to 4.0%, above the forecast of 3.8%. The data demonstrates that the US labor market remains strong, and the economy continues to perform well. The markets remain bullish on US growth, despite uncertainty in Europe and elsewhere, as well as the growing threat of an all-out trade war between the US and China.
Economic Calendar
Tuesday (July 10)
- 5:00 German ZEW Economic Sentiment. Estimate -17.9. Actual -24.7
- 5:00 Eurozone ZEW Economic Sentiment. Estimate -13.2. Actual -18.7
Wednesday (July 11)
- 3:00 ECB President Mario Draghi Speaks
- Tentative – German 10-year Bond Auction
*All release times are DST
*Key events are in bold
DAX, Tuesday, July 10 at 6:55 DST
Previous Close: 12,543 Open: 12,574 Low: 12,529 High: 12,598 Close: 12,594
