The DAX Index Surging
European shares remain firm. The DAX rose 0.10% to trade at 12,097.08. Eurozone Q4 Revised Gross Domestic Product increased 0.6%. Tomorrow, the European Central Bank will have a meeting and US will release jobless claims. The interest rate is expected to remain unchanged. Mario Draghi’s post meeting comments will be in the spotlight, as investors will be looking for hints about exiting the asset purchase program. Eurozone inflation is still soft. Consumer Price Index fell from 1.3% to 1.2%. Retail PMI increased to 52.3.
Recently, European stocks were under pressure as Donald Trump decided to impose steel and aluminum tariffs. The majority believes that the President’s pledge was more of an attempt to draw everybody’s attention. But, Trump is stubbornly refusing to back down, despite the opposition from his own administration’s. As a response to his decision, the European Commission has offered 25% tariffs on imports of the US steel, clothing and other industrial production. Still, there is hope that Donald Trump’s administration will convince the President to back down. In that case, EU wouldn’t have to sign the order.