DAX Index Has Decreased Significantly

Forex News

Global stock markets are falling amid geopolitical tensions between the US and North Korea. Germany's DAX stock index fell significantly. The DAX decreased by 0.77% and is trading at the level of 12.060.00.

Low inflation remains the main problem for ECB politicians. Inflation in the Eurozone was 1.3% yoy in July, well below the ECB's 2% target. Even Germany, whose economy is very strong, is struggling with weak inflation. Analysts do not expect an increase in the ECB rates until the second half of 2018.

The US Federal Reserve's stance on rates remains unclear. Earlier this year, the Fed has hinted that this year it plans to raise rates three times, but so far only two increases have taken place - in March and June. Last week, St. Louis Federal Reserve President James Bullard said that he was against any further increases in rates. The politician said that the next rate hike will further slow the growth of inflation in the US. The chances of a rate hike in December are 42% now.