The DAX Index Ultimately Stabilized
DAX has recovered by liftting 1.63% to trade at 12,303.00. Last week marked some severe volatility at the stock market. DAX was no exception as the index dropped 4.6% and marked its 4-month minimum. Overall, in February, the latter fell 7.6%. But, on Friday, the situation got better and now shares pare their losses. Some analysts said the weakness was due to possible policy changes, particularly Fed and BoE rate hikes. That’s why, investors remain worried about another downturn.
Angela Merkel officially declared the reformation of grand coalition after conclusion of the negotiation with Social-Democratic Party. The Chancellor claimed they will create "the good and stable government that our country needs and that many in the world expect from us". SPD leader Martin Schulz will leave his leading position and become Foreign Minister of Germany. Today, Merkel announced her concessions to the Social-Democratic Party. Merkel’s Christian Democratic Union and SPD keep working on the reformation of the grand coalition and the Chancellor’s concessions suggest she should pass the finance minister foreign ministry. Merkel said it would be very difficult for her to do that.