DAX Bears The Losses Amid Global Trade Disagreements
European stock indexes decline today, increasing losses from the previous session, as the uncertainty around Brexit and US trade policy weakened the prospects for global growth. The German DAX stock index fell by another 0.74% to trade at 12.395 level. Yesterday, the DAX has lost near 1.0%.
Growth of retail sales in Germany slowed in July more than expected. On a monthly basis, retail trade turnover fell by 0.4%, after rebounding by 0.9% in June. Economists predicted a less significant decline in the indicator by 0.2%. Retail sales rose at an annualized rate of 0.8%in July after rising 2.7% in June. Economists predicted that sales will grow by 1.3%. Despite the weaker expansion this was the second consistent growth of the indicator.
Eurozone has also published some important data today. Eurozone CPI fell to 2% in August from 2.1% in July. Core inflation, which excludes energy, food, alcohol and tobacco, slowed to 1% from 1.1% a month ago. Unemployment rate in the Eurozone remained unchanged at 8.2% in July.
Last week, the US and China introduced reciprocal tariffs for each other's goods worth $16 billion. In July, both countries also introduced tariffs for each other's imports amounting to $34 billion. It was reported earlier, that that US President wants to impose tariffs on another $200 billion worth of Chinese goods as early as next week. That would mean more than half of all Chinese imports would be subject to tariffs. The tariffs could go into effect after the public-comment period ends on September 6.