The DAX index has posted slight gains in the Tuesday session. Currently, the DAX is trading at 12,434.53, up 0.13% on the day. In economic news, there are no eurozone or German indicators for a second straight day. On Wednesday, ECB President Mario Draghi will speak at an ECB conference in Frankfurt and Germany releases Final CPI.
Despite the turbulence surrounding US President Trump’s controversial decision to slap tariffs on steel imports, eurozone stock markets enjoyed a strong week, and the DAX surged with a 4.4% gain. There was concern on the part of investors over the tariffs, which generated harsh criticism from the EU. However, Trump has exempted Canada and Mexico from the tariffs, and has said that Washington could ease the duties on other countries as well. Importantly, there is strong domestic opposition to Trump’s move, including senior Republican lawmakers who have said they will work to overturn the tariffs, which could spark an all-out trade war. So far, the markets are confident that a solution to the tariff tussle will be found.
Is the German industrial sector in trouble? Last week’s numbers were surprisingly soft. Factory Orders in January plunged 3.9%, worse than the estimate of -1.9%. This marked the second decline in the past three months. This was followed Industrial Production, marking a second straight decline. Still, the German economy has performed well, and has led the impressive recovery in the eurozone.
Economic Calendar
Tuesday (March 12)
- All Day – ECOFIN Meetings
Wednesday (March 14)
- 3:00 German Final CPI. Estimate 0.5%
- 4:00 ECB President Draghi Speaks
- 6:00 Eurozone Employment Change. Estimate 0.3%
- 6:00 Eurozone Industrial Production. Estimate -0.4%
*All release times are EST
*Key events are in bold
DAX, Tuesday, March 13 at 7:10 EDT
Prev. Close: 12,418.39 Open: 12,420.74 High: 12,458.97 Low: 12,409.00 Close: 12,434.53
