The DAX Index Falls, US and China Negotiate Trade
DAX grew 1.80% to trade at 11,199. Meanwhile, China has filed applications with the WTO (World Trade Organization) as an objection to US $60 billion tariffs. Stocks have weakened after the news. But, prior to that, the sentiment was rather cheerful. DAX marked significant gains, Commerzsbank rose 1.52% and Deutsche Bank increased 1.33%.
Erkki Liikanen (Governing Council member and the governor of Finland's central bank) claimed that Eurozone’s underlying inflation might stay at low levels longer than anyone assumes. And the ECB should very careful in its policy decisions, Liikanen added. Even considering the fact that the Bank is trying to cope with the economic slack, inflation may no longer respond with increase, as it used to, he explains. Thus, the ECB is much likely to refrain from any policy tightening so far.
German Import Prices dropped to the 8-month minimum of 0.6%. Today, the US will release CB Consumer Confidence. Tomorrow, we’ll get German GfK Consumer Climate and US Final Gross Domestic Product.