DAX Shows 1.32% Loss Amid Global Stock Markets Collapse
European stock markets fell after the decline in shares in Asia and the US. The German DAX stock index is trading at 12.271.50, losing 1.32%. The Eurozone economy continues to expand, but still, inflation remains well below of the ECB's 2% target. The CPI fell to 1.2% in February, compared to 1.3% in January. Today’s data also showed that German Manufacturing PMI fell to 60.6 in February. Eurozone Manufacturing PMI declined to 58.6, but was above the forecast of 58.5 points.
Eurozone unemployment fell to its lowest level in more than nine years in January thanks to strong economic growth. The European Union's statistics office Eurostat said the unemployment rate in the Eurozone was 8.6% in January. The number of unemployed fell to 14.111 million people in January from 14.121 million a month earlier. The steady drop in unemployment levels in the Eurozone coincides with a firm economic recovery which reached last year its fastest pace in a decade.
Federal Reserve Chairman Jerome Powell said the central bank can continue gradually raising interest rates as the outlook for growth remains strong. The central bank has been struggling with too low inflation. The personal consumption expenditures price index has been below the central bank’s 2% target for most of the past five years. But still, inflation is expected to raise this year.