DAX Index Gained 0.99%, Despite Fall of German Services PMI
European stocks climb as tech sector hits 17-year high. The German DAX stock index is trading at 12.897 level, having gained 0.99%. Today’s data showed, that German Final Services PMI fell to 52.1, matching the forecast. The Eurozone Final Services PMI fell to 53.8, just shy of the estimate of 53.9 points. Eurozone retail sales disappointed, posting a weak gain of 0.1% for a third straight month, but missed the estimate of 0.5%.
The Eurozone private sector demonstrated the slowest rate of expansion over the past year and a half in May. The final IHS Markit data showed that the combined issue index fell to 54.1 from 55.1 in April, and was in line with the preliminary indicator. This was the lowest result since November 2016.
The growth of the private sector in Germany has receded from its peak. The combined issue index fell to 53.4 from 54.6 in April. The last reading was the lowest for 20 months, but above the preliminary estimate of 53.1. The PMI index in the services sector fell to 52.1, the lowest level since September 2016, from 53.0 in April. The assessment was in line with a preliminary assessment.
After almost three months of political turmoil that raised concern across Europe and sparked weeks of volatility on financial markets, the first eurosceptic government in a founding EU nation was sworn in on Friday. The new coalition is made up of two eurosceptic parties, the League and the Five-Star Movement, which is likely to cause tensions between Rome and the European Union.