DAX Continues to Decline Despite Easing of Italy's Budget Deficit Fears
The German DAX stock index continues to show losses. Today, the DAX has lost another 0.42% to trade at 12.287 level. European stock markets remain under pressure, despite easing of the Italian budget crisis.
It is reported, that Italy plans to reduce budget deficit by 2.0% in 2021. According to the Italian newspaper Corriere della Sera, the government estimates a budget deficit of 2.4% of GDP for 2019, and then slash it to 2.2% for 2020. Earlier, the European Union was unhappy with the proposed Italian budget, which increases spending, lowers taxes and sets the budget deficit at 2.4% of GDP for 2019.
Today’s economic data showed, that business activity in the German services sector accelerated in September. German Services PMI increased to 55.9 in September, up from 55.0 in August and reached an 8-month high. Meanwhile, IHS Markit's final composite Purchasing Managers' Index, which tracks the manufacturing and services sectors that account for more than two-thirds of the economy, fell to 55.0 in September from 55.6 in August.
The Eurozone economic data showed, that retail sales declined by 0.2% mom in August, after a decline of 0.6% in July. Economists had forecast an increase of 0.2% in August. On an annual basis, retail growth accelerated to 1.8% in August from 1% in July. It was expected that sales will grow by 1.7%. Also released today, Eurozone Services PMI rose to 54.7 in September, matching the forecast.