DAX Starts the Week Broadly Higher

Forex News

European stock markets start the week higher. The German DAX stock index is trading at 11.401 level, having gained 1.78% on the day. Last Friday, the DAX touched its lowest level since December 2016 (11.051). Overall in October, the DAX has lost 6.8%.

German Chancellor Angela Merkel announced that she would not seek re-election as chair of the Christian Democrats. Merkel said she will stay on as Chancellor until her term ends in 2021. The statement came after the election results in Hesse, where support for the Merkel's party has declined substantially. The news sent the euro lower and pushed German bond yields higher. The German 10-year bond yields jumped 3-1/2 basis points to 0.384%, the yield on 30-year note also climbed nearly 3-1/2 basis points to 1.023%.

Tomorrow, Germany will release Preliminary CPI. Inflation is expected to grow by 0.1% mom and 2.4% yoy in October.