DAX Moves Higher, Recovering From Previous Losses
European equities rose today, as investors consolidated after heavy losses in the previous session, when heightened concerns about the escalation in the trade war between the US and China undermined sentiment. The German DAX stock index rose by 0.69% to trade at 12.503 level.
German Final CPI slipped to 0.1% in June, down from 0.5% a month earlier. German inflation increased 2.1% over the year in June with core inflation up 1.4% y/y. German inflation is above 2% for the second month in a row. Energy prices increased 6.4% over the year becoming the main driven of German prices. Meanwhile, the harmonized index of consumer prices (HICP) for Germany, which is calculated for European purposes, rose 2.1% over the year in June, exceeded again the two-percent threshold, which is the official inflation target of the European Central Bank.
Eurozone industrial production increased by 1.3% in May, compared to April, for a 2.4% expansion year-on-year. Economists had expected growth of 1.2% mom and 2.1% yoy. All industrial sectors saw a higher output in May than in the previous month, most notably among producers of durable and non-durable consumer goods.
Meanwhile, the European Commission reduced its economic forecasts for the Eurozone. According to updated forecasts, the Eurozone GDP will grow by 2.1% this year and slow to 2.0% next year. Eurozone inflation is expected increase to 1.7% in 2018 and 2019, from the previously estimated 1.5% in 2018 and 1.6% in 2019.