DAX Rally Continues As Trump Suspends Auto Tariffs
MarketPulse | May 16, 2019 07:48AM ET
The DAX started the week with sharp losses, but has rallied and is on its way to a third straight winning session. Currently, the DAX is at 12,189, up 0.74%. In economic news, there are no major German or eurozone events. The eurozone trade surplus narrowed to EUR 17.9 billion in March, down from 19.5 billion a month earlier. On Wednesday, the eurozone releases consumer spending reports.
Global equity markets continue to show strong movement, in response to breaking developments in the global trade war. The DAX plunged 1.5% on Monday, as China retaliated against the U.S. and slapped tariffs on $60 billion in U.S. products. However, the blue-chip DAX has been quick to recover, jumping 2.7% since Monday. Investors have regained risk appetite, as the trade talks between the U.S. and China have not been derailed, even with the latest tariff tussle. Investors had been worried that Trump might target European and Japanese vehicles with new tariffs, and this had triggered sharp losses for German automakers listed on the DAX, including Bayerische Motoren Werke AG (MI:BMW), Daimler and Volkswagen (DE:VOWG_p). There was relief on Thursday after President Trump announced a 6-month delay on any car tariffs.
Economic Calendar
Thursday (May 16)
- 4:15 German Buba President Weidmann Speaks
- 5:00 Eurozone Trade Balance. Estimate 19.0B. Actual 17.9B
- All Day – Eurogroup Meetings
Friday (May 17)
- 5:00 Eurozone Final CPI. Estimate 1.7%
- 5:00 Eurozone Final Core CPI. Estimate 1.2%
*All release times are DST
*Key events are in bold
DAX, Thursday, May 16 at 7:40 DST
Previous Close: 12,099 Open: 12,063 Low: 12,029 High: 12,204 Close: 12,189
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