DAX Dips as Yesterday's Optimism Was Replaced by Renewed Uncertainty
European stock markets are trading lower today. The German DAX stock index is trading at 11.388 level, having lost 0.67%. The DAX started the week with sharp gains and added 1.9% on Monday, after the US and China agreed to a truce in the tariff war.
Last weekend, US President Trump and Chinese President Xi Jinping held a meeting and agreed to suspend any further tariff moves for 90 days. Investors started to question whether the truce agreed by the United States and China on their trade dispute would lead to a long-term deal.
Meanwhile, Italy continued to remain in the spotlight after Prime Minister Giuseppe Conte said the revised budget would be ready in the coming hours.
Today’s data showed, that Eurozone producer prices rose more than expected in October on the back of rising energy costs. Report from Eurostat showed that producer price index in the Eurozone rose 0.8% month-on-month in October against market expectations for a 0.5% rise. On an annual basis, producer prices rose by 4.9% in October, against market expectations for a 4.5% gain.