DAX: Downward Trend Continues
European stocks fell on Friday, to extend losses from the previous session. The German DAX stock index dropped by another 0.32% to trade at 11.552 level. The index has completed the strong gains which it recorded early in the week.
European shares are weighed down by Italian political uncertainties. The Italian government has defended its 2019 budget priorities after the European Commission sent a letter to Rome, arguing that the financial plans seem to point to a particularly serious non-compliance with the budgetary policy obligations laid down in European rules. Italy must reply to the European Commission by Monday.
Today’s data showed, that the Eurozone current account surplus rose to EUR 24 billion in August from EUR 19 billion in July. A year ago, the surplus was EUR 39 billion. The visible trade surplus increased to EUR 22 billion from EUR 19 billion in the previous month, while the surplus in services trade decreased to EUR 9 billion from EUR 10 billion.
Also, it was reported, that the UK budget deficit reached its lowest level in 11 years. The deficit stood at 4.123 billion pounds in September, compared with 4.958 billion pounds a year ago. This was the lowest September deficit since 2007.