DAX Index As Well As German Bonds Weakened
DAX has weakened 0.51%. At this point, it’s trading at 12,743.50 pts. German 30-year bond yield has declined as well. Germany’s economic production is projected to rise 1.5% this year. Soft single currency, oil prices and ECB’s policy stance give an additional boost to the economy. Global demand for country’s output is growing. Ifo economic institute lifted its projections over German Gross Domestic Product for this year from 1.8% to 2.0%. Projections for economic growth were raised from 1.5% to 1.8%. Inflation is expected to increase to 1.7% this year.
The price for September’s rate hike has broadly dropped as officials and experts say the most appropriate time for such an action would be December (49% chance). William Dudley (New York Fed President) claimed that full employment will be reached very soon, which in turn will suggest the need to lift wages and boost inflation.