DAX Ends Trading Week Broadly in Red

Forex News

European equities moved lower on Friday. The US midterm elections earlier this week boosted global stock markets and gave the DAX a slight boost, but the upward momentum quickly dissipated after the Federal Reserve rate statement. The DAX index is trading at 11.470 level, having lost 0.50%.

Yesterday, the US Federal Reserve reaffirmed its monetary tightening stance and kept interest rates unchanged in the range of 2-2.25%. Markets expect the next rate hike in December. Overall in 2018, the US central bank raised its interest rate for three times.

Investors are also closely monitoring developments in Italy, after the European Commission said Thursday that Rome's economic forecasts are not in line with its own calculations. The EU’s Economic Commissioner, Pierre Moscovici, has demanded that Rome revise its budget, which it says increases Italy’s debt and is in breach of EU rules. Moscovici has demanded a response from Rome by November 13.