DAX Moves Higher, Boosted by ECB Statement
The German DAX stock index rose by 0.30% to trade at 12.092 level. Today’s data showed, that the Eurozone trade surplus fell to EUR 12.76 billion in July from EUR 16.47 billion in June. This was the lowest level since June 2014, when the surplus was EUR 12.22 billion.
The results of the Bank of England and ECB meetings fully met expectations: both regulators left the parameters of their monetary policy unchanged. The ECB has left benchmark rate at 0.00%. The Bank also announced that it would wind up asset purchases at the end of this year. As well, the ECB will trim its monthly bond purchases from EUR 30 billion to 15 billion, starting in October.
The ECB lowered economic growth forecasts for the Eurozone. The forecast for the current year has been lowered from 2.1% to 2.0%, and for 2019 from 1.9% to 1.8%. The ECB is also predicting that inflation will remain steady at 1.7% through 2020. ECB President Mario Draghi assured that incoming economic data indicate a large-scale growth. In general, the comments of the ECB head were moderately optimistic, which positively affected the dynamics of the single currency.