DAX Lower, Despite Strong German Indicators
The German DAX stock index falls again after two sessions of gains. The DAX is trading at 12.875 level, down 0.56% today. Industrial production in Germany bounced back in March after fall in February, soothing fears of sharp slowdown after a year of unexpectedly strong growth. The Destatist said, that output among industrial firms in Europe's largest economy grew by 1.0% month-on-month in March. On annual basis, German industrial production increased by 3.2%.
Market participants are monitoring the Eurozone’s data over the next few weeks to see whether the European Central Bank (ECB) might be forced to extend monetary stimulus. Recent data across the Eurozone has shown that economic activity in the region could be slowing down, raising doubts over the future of monetary policy.
The ECB reduced its stimulus package at the start of the year from EUR 60 billion to 30 billion, and extended the program to September. But given the improved growth and inflation rates seen throughout 2017, many analysts started forecasting that QE will come to an end in September, when it is due to expire.