MarketPulse | Jan 30, 2019 07:49AM ET
The DAX index has edged lower in the Wednesday session. Currently, the index is at 11,189, down 0.26% on the day. After a slow start to the week, there are a host of events on Wednesday. The key event is German Preliminary CPI, which is expected to post a decline of 0.9%. In the U.S., the highlight is the Federal Reserve rate statement. The U.S. will release a host of employment numbers during the week, starting off with ADP nonfarm employment. The indicator is forecast to fall sharply to 180 thousand, down from 271 thousand. On Thursday, the eurozone releases Preliminary Flash GDP.
The eurozone economy has slowed in recent months, and Germany has not been immune to softer numbers. There was positive news on Wednesday, as German GfK Consumer Confidence estimating a score of 10.8 for February, higher than the revised reading of 10.5 points for January. The well-respected GfK projected that consumer spending would climb 1.5% in 2019, but warned that a further escalation in the global trade dispute would hurt consumer spending. Last week, German Ifo Business Climate dipped to 99.1, below the 100-level for the first time since 2010. There was also grim news from the manufacturing front, as German manufacturing PMI slipped to 49.9, falling into contraction territory for the first time since 2013.
The U.S.-China trade spat will be back in the headlines this week, as Chinese and U.S. officials will hold a second round of talks on Wednesday and Thursday. The stakes are high, as the trade tensions between the two largest economies in the world has taken a toll on the global economy and rocked world equity markets. On Monday, U.S. Treasury Secretary Steven Mnuchin said he expects significant progress in the talks, but warned that the sides would have to tackle “complicated issues”. Tensions between China and the U.S. have escalated in recent weeks, with the U.S. Justice Department filing criminal charges against Huawei, a Chinese technology company.
Economic Calendar
Thursday (January 31)
*Key events are in bold
DAX, Wednesday, January 30 at 7:25 EST
Previous Close: 11,218 Open: 11,209 Low: 11,160 High: 11,215 Close: 11,186
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.