DAX Trading Sideways
The global stock markets remain calm, despite implementation of the US tariffs on the Chinese goods. European shares opened in positive territory today. The German DAX stock index is almost unchanged. The DAX is trading at 12.455 level, 0.07% lower.
Production numbers of Germany remain firm. German industrial output jumped 2.6% in May, the highest rise since November. The reading exceeded economists’ forecast for a rise of 0.3%. The figure for April was revised to a fall of 1.3% from a previously reported fall of 1.0%. Compared with May last year, production surged 3.1%. On Wednesday, data showed that industrial orders had surged by 2.6% in May after four consecutive monthly drops.
US tariffs for Chinese imports will begin to operate today. The United States will begin charging tariffs for Chinese goods worth $34 billion and now all attention has shifted to how China will respond. President of the United States Donald Trump has already warned that subsequent rounds of tariffs can be applied to Chinese goods by more than $500 billion (this is about as much as the United States imported from China last year).