DAX Rises Despite Weak GfK Data
The German DAX stock index rose by 0.10% to trade at 12.539 level. At the beginning of the week, the DAX showed gains in response to an unexpectedly strong business confidence report in Germany. The Ifo Business Climate report improved to 103.8, easily beating the estimate of 101.9 points. Still, the DAX has lost 2.2% in August.
German GfK Consumer Climate dropped from 10.6 to 10.5 points. Although economic expectations have improved, income expectations and the propensity to buy declined in August. The index of economic expectations rose to 22.2 in August from 15.7 in July. The indicator of income expectations was 52.6 against 57.5 a month ago. At the same time, the propensity to buy fell to 55.2 from 56.2 in the previous month.