Automakers Boost DAX, CAC After Michelin Posts Strong Earnings
MarketPulse | Feb 12, 2019 07:32AM ET
The DAX index has steadied on Tuesday after sharp losses last week, at 11,146, up 1.19%. The CAC index is at 5072, up 1.15%. There are no German or eurozone data releases on the schedule. On Wednesday, the eurozone releases industrial production.
After falling 2.45% last week, the DAX has clawed back and recovered most of these losses. On Tuesday, the German index jumped courtesy of unexpectedly strong earnings at Michelin (PA:MICP), the giant French tire maker. This triggered strong gains for European carmakers. Daimler AG NA O.N. (DE:DAIGn) has climbed 2.34% and Volkswagen (DE:VOWG_p) is up 1.74%. On the CAC index, Michelin has soared 11.45% and Peugeot SA (PA:PEUP) has climbed 2.99%.
Investors are keeping a nervous eye on recent data out of the eurozone and Germany, which has sent the euro reeling. Consumer data has sagged, with retail sales and inflation pointing lower. German manufacturing is also in trouble, with factory orders and industrial production recording declines. The global trade war has dampened the appetite for German and eurozone exports, which has weighed on the manufacturing sector.
The U.S. is poised to impose new tariffs on China on March 2 if a trade deal between the two countries is not reached. Although the sides are talking, there has been little sign of progress. If the tariffs are put in place, risk appetite could falter and send European equity markets lower.
Tuesday (February 12)
- 3:20 German Buba President Weidmann Speaks
- All Day – ECOFIN Meetings
Wednesday (February 13)
- 5:00 Eurozone Industrial Production. Estimate- 0.4%
*All release times are DST
*Key events are in bold
DAX, Tuesday, February 12 at 7:00 EST
Previous Close: 11,014 Open: 11,127 Low: 10,115 High: 11,156 Close: 11,146
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