DAX Continues Its Upward Trend

Forex News

The German DAX stock index continues to move higher. Today, the DAX rose by another 0.27% to trade at 12.844 level. This week, the DAX has climbed 2.6% and is at its highest level since mid-June. European shares, in particular DAX, were boosted by yesterday’s rate statement of the ECB, as low interest rates are bullish for stocks.

The European Central Bank did not bring any surprises to the markets, leaving its monetary policy unchanged. The ECB left the main refinancing rate is held at 0.00%, marginal lending facility rate at 0.25%, deposit facility rate at -0.40%. The ECB also reiterated that it plans to keep rates at current levels, "at least until the end of the summer of 2019". ECB President Mario Draghi stated that the asset purchase target will be lowered to EUR 10B per month after September. The program will end after December.

German Import Prices rose in June at the fastest pace in more than a year. Import prices rose by 4.8% year-on-year in June after an increase of 3.2% in May. This was the third consecutive growth and the fastest since April 2017, when prices rose 6.1%. Economists predicted an increase of 4.5%. On a monthly basis, import price inflation rose by 0.5% in June after rising 1.6% a month ago. Economists predicted an even weaker growth rate of 0.3%.