DAX Stabilizes After Last Week's 2.16% Fall

Forex News

European stocks stabilized at the beginning of the week. The German DAX stock index is trading at 11.336, having lost 0.04%. Last week, the DAX has recorded a 2.16% fall. European equities slumped last week as concerns over a possible no-confidence vote against UK Prime Minister Theresa May, as well as persisting Italian budget woes pushed investors to exit.

Traders also continue to watch US-China trade talks. Last Friday, US President Donald Trump said that China wants to bargain with the United States, but any pact should be mutual. However, caution in the markets persists after the US Vice President Mike Pence said that the US will not back down from its trade dispute until China changes its course.

The European Central Bank is expected to wrap up its 2.6 trillion euro bond buying program next month, paving the way to raise interest rates sometime after next summer for the first time in eight years as part of a long path toward monetary policy normalization.