DAX Trading Sideways After Falling Below 12.000 Line
The German DAX stock index fell by 0.01% to trade at 12.038 level. Earlier today, the DAX dropped below the symbolic 12.000 level for the first time since early April. So far this week, the DAX has lost 2.5%. However, market sentiment was still muted due to continued concerns about emerging markets and possible new US tariffs on China.
German industrial orders unexpectedly fell in July. The Destatis reported, that production orders fell by 0.9% mom in July after a more significant decline by 3.9% in June (revised from -4%). Economists predicted an increase in the figure by 1.8%. The main driver was a decrease in foreign orders, which fell 3.4% from June to July. Orders for German goods from outside the euro area were down 4.0%. While overseas orders dipped, German domestic orders increased by 2.4%.
The Ifo Institute for Economic Research has raised its growth forecast in 2018 for the German economy to 1.9% from 1.8% earlier, citing higher-than-expected productivity in the first half. Ifo also predicts growth rates of gross domestic product of 1.9% in 2019 and 1.7% in 2020.