DAX Slightly Lower After Weak ZEW Reports
The German DAX stock index is trading at 12.820, having lost 0.10%. The DAX has been pretty solid over the last few weeks but now, the index remains under pressure of a trade war threats and possible tightening of the ECB stimulus.
The mood among German and Eurozone investors worsened in June. The Mannheim-based ZEW research institute said its monthly survey showed its German economic sentiment fell to -16.4 this month from -8.2 in May. That was compared to the consensus forecast for a reading of -14.6. This is the lowest value since September 2012 and well below the long-term average of 23.3 points.
Meanwhile, Eurozone ZEW Economic Sentiment decreased to -12.6 in June from 2.4 a month earlier. Consensus was looking the index to fall to 0.1.
The Organisation for Economic Co-operation and Development (OECD) said in its statement, that Germany's economic recovery remains strong despite the threat of US trade protection policies, and the government should use its budget surplus to increase investment to help reduce its large current account surplus. The OECD predicts that German exports will grow by 4.5% in 2018 and 2019, despite the threat of growing trade barriers and US policy regarding the tariffs and sanctions of US President Donald Trump.