The DAX Index Softens, Awaiting G6+1
The DAX declined 0.82% to 12,707, having fallen over 1.0% earlier this day. German Industrial Production fell 1.0%, the 4th downturn in 5 months. Trade surplus reduced to 19.4 billion euro. Factory Orders dropped 2.5%, marking the 3-month minimum. If German data continues to disappoint, stocks will get under some heavy pressure.
Today, the focus is G7 meeting in Canada, which is expected to focus exclusively on US protectionist trade policy. Angela Merkel admitted the discussion will be difficult, saying “it is apparent that we have a serious problem with multilateral agreements here, and so there will be contentious discussions.” Emmanuel Macron, in his turn, told US that he refused signing a joint statement out of the G7 summit if there was no progress on tariffs, Iran nuclear deal and the Paris climate accord. Overall, the market is rather anxious, because if leaders don’t manage to resolve the conflict, a trade war can’t be avoided.