DAX Shows Considerable Losses
European stocks decline today. The German DAX stock index is trading at 12.242 level, down 0.78% on the day. Last week, the DAX has lost 1.1% amid increased political tension in Italy. Tomorrow, Germany and the Eurozone will release Services PMI.
Italian stock markets were broadly lower last week and dragged down the German equity markets as well. Last week, the Italian government voted to increase spending and cuts taxes and set the budget deficit at 2.4% for 2019, 2020 and 2021. The EU policymakers have been pushing Rome to reduce the current deficit, which stands at 1.6% of GDP.
Yesterday’s data showed, that German monthly retail sales fell unexpectedly in August, suggesting that household spending lost some steam as a growth driver in Europe’s biggest economy over the summer. Volumes of retail sales in Germany dropped by 0.1% mom in August. This was weaker than the forecast for a 0.4% gain and followed a downwardly revised drop of 1.1% in July. On annual basis, retail sales rose by 1.6%, beating the forecast for a 1.5% increase.