DAX Recovers as Markets Sentiment Stabilizes

Forex News

European stock indexes recovered from a two-year low today. The German DAX stock index added 0.33% to trade at 11.174 level. The DAX has dropped 1.8% this week, and there could be more bumps ahead, as nervous investors fret over the escalating trade war between the US and China.

It was reported that Italy’s Deputy Prime Minister Matteo Salvini could compromise on a budget criticized by the European Union. He stated that he was not open to negotiations on the Italian budget deficit target of 2.4% of GDP next year, although other aspects of the budget could be discussed. Meanwhile, the European Commission took the first step towards Italy with respect to its draft budget and stated that the government should face EU action to reduce its deficit.