European Shares Suffer From Tech Sell-off, DAX Falls by 0.68%
Stock markets are likely to remain explosively volatile and wildly unpredictable amid the ongoing trade drama between the US and China. European stock markets changed direction today, noting the high losses, against the backdrop of the downward movement of technology stocks. The DAX index showed strong losses, and is trading at around 11.888 points, down 0.68%. Facebook shares remain under pressure after reports of privacy violations affecting millions of users. Commerzbank lost 2.44%, while Deutsche Bank fell 0.70%.
Investors lost their risk appetite last week after US President Trump announced stiff tariffs on up to $60 billion in Chinese imports. Although the US has imposed the tariffs under a national security provision, China has argued that the move is a trade barrier with the intent of protecting domestic producers. China stated it would apply to the World Trade Organization to overturn the tariffs.
Consumer confidence in Germany will improve in April, according to a survey conducted by the market research group GfK. Consumer Climate unexpectedly increased by 0.1 points to 10.9 in April. Economists had expected the estimate to drop to 10.7. The GfK consumer confidence index is a leading indicator, assessing the degree of consumer confidence in the power of economic growth. A high level of consumer confidence positively affects the economic recovery.