The DAX Index Weakens, No Progress in Oil Price
DAX has lowered 0.50%. At this point, it’s trading at 12,730.25 pts. Oil prices remain extremely subdued. Brent crude has dropped 10.8% this month and it’s now trading near 45 dollars/barrel. This leads to weak inflation, which is also a huge problem. German Manufacturing PMI reduced to 59.3 in the previous month. Eurozone Manufacturing PMI rose to 57.3 pts, it has been growing for ten consecutive months.
Germany’s economic growth stays firm. The 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%. Forecasts for economic growth were raised from 1.5% to 1.8%. Inflation is expected to increase to 1.7% this year.