DAX Rises Awaiting US CPI Data
The German DAX stock index gained 0.31% and is trading at 12.983 level. Overall, the European stock markets showed a muted reaction to US President Trump’s speech on Tuesday. Donald Trump announced that the US would withdraw from an international nuclear deal with Iran. The US will publish data on the CPI. Analysts expect consumer prices to grow to 2.5% on a year-over-year basis, up from 2.4% in March.
As expected, the Bank of England holds rates unchanged, after a recent series of economic reports pointed to a loss of momentum in the British economy. The BoE’s Monetary Policy Committee was split on the decision to keep interest rates unchanged at 0.5%. Britain's economy slowed to near stagnation in the first three months of 2018, with gross domestic product rising by just 0.1%.
In its Economic Bulletin, the ECB pointed to some moderation in economic growth, which can partly reflect a pullback from the high growth rates observed at the end of last year. The risks associated with the prospects for the growth of the Eurozone remain generally balanced, but they are mainly related to global factors, including the threat of increased protectionism. As for inflation, policymakers are still confident that inflation will continue to move towards the inflation target of 2%. The ECB still expects interest rates to remain at their current levels for a long period of time.