The DAX Index is Motionless
The DAX is trading at 12,769.25 pts. The Eurozone is going to announce Consumer Confidence. Tomorrow, Germany and the Eurozone will publish manufacturing PMIs. 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.
Fed claimed it would moderately lower the 4.5T dollars balance sheet in near future. Patrick Harker noted that the lowering should be started in September. The price for September’s rate hike has broadly dropped to 13% 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.