DAX Dips on German Political Instability and Weak Manufacturing PMIs
European shares fell today, as worries about US trade policies and concerns about German Chancellor Angela Merkel's coalition government weighed on sentiment. Economic indicators across the Eurozone also gave no support to stock markets. The German DAX stock index is trading at 12.237 level, having lost another 0.56%. Last week, the DAX dropped by 1.5%.
Eurozone factory growth slowed to an 18-month low in June, slipping for the sixth month in a row amid widespread concerns about trade barriers and their impact on overall economic activity. IHS Markit's June final manufacturing Purchasing Managers' Index (PMI) fell to 54.9 from May's 55.5.
German manufacturing export sales and new orders grew at their slowest pace in more than two years in June, adding to signs the sector is cooling as fears of a full-blown global trade war cloud the economic outlook. Markit's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of the economy, dropped to 55.9 from 56.9 in May.
Meanwhile, Eurozone jobs data were more positive. Eurozone unemployment was stable at 8.4% in May, with the number of job seekers falling slightly compared to April to 13.66 million. Economists had on average expected an increase to 8.5%.