DAX is Trading Higher, Erasing Yesterday’s Losses

Forex News

The German DAX stock index rose today, after yesterday’s losses. The DAX rose by 0.12% to trade at 12.365 level. Last Friday, the DAX touched 12.458, its highest level in September. Overall last week, the DAX has gained 3.1%. The global stocks, including DAX, were pressured by escalation of the US-China trade war.

The German wholesale price index (WPI), published by the German statistical office, and estimating the volume of sales by German wholesale companies, rose in August. On a monthly basis, wholesale prices in August rose by 0.3%, after rising 0.1% in July. The WPI increased by 3.8% year-on-year after an increase of 3.6% in July. This was the fastest growth in wholesale prices since April 2017.

The two-day meeting of the US Fed starts today. The US central Bank appears ready to hike interest rates on Wednesday for the third time this year, as the central bank responds to rising inflation and robust hiring by US employers. FOMC is likely to maintain interest rates at a range between 2.00% and 2.25%.

Fed officials have gradually raised rates to prevent the economy from overheating, or growing too fast and causing prices to spike. Policymakers have telegraphed a total of four rate hikes in 2018, followed by three increases in 2019.