DAX Continues to Decrease, Falling Below 13.000 Level

Forex News

The decline in European stock markets continues. The German DAX stock index fell to 4-week lows. The DAX decreased by 1.08% and is trading at the level of 12.863.50. Deutsche Bank's shares plummeted by 5.5% today, while Commerzbank shares fell 1.62%.

Producer price inflation in the euro area fell faster than expected in December. Producer prices rose by 2.2% in December compared to the same period last year, which is less than the growth of 2.8% in November. Economists had expected inflation to fall to 2.3%. Moreover, it was the weakest PPI inflation since July, when prices increased by 2.0%.

As the Eurozone economy continues to function successfully, it has been speculated that the ECB could complete its asset purchase program (QE) in September and move on to regulatory policies and possibly raise interest rates. However, Mario Draghi and other ECB representatives said that the Bank is in no hurry to complete the QE program, as inflation in the euro area is still far from the 2% target of the central bank.