DAX Reaches a 2-week Low Amid Global Stocks Tumble
European stock indexes fell sharply and are trading near two-week lows, because trading problems have undermined investors' risk appetite. The German DAX stock index fell by 0.78% to trade at 11.244 level. Earlier today, the DAX dropped to its lowest level since November 21. Overall this week, the DAX has lost 2.50%.
The global stock markets climbed after US President Trump and Chinese President Xi reached an agreement, whereby the US agreed to suspend further tariffs for 90 days. But the meeting between the two leaders had a short-lived impact on the markets. There is skepticism and confusion regarding the US-China trade truce after China promised to act, but gave no details about the preliminary truce.
Today’s data showed, that German services PMI fell to 53.3 in November from 54.7 in October, with business optimism in the sector falling to the lowest level in two years. IHS Markit's final composite Purchasing Managers' Index (PMI), which tracks the manufacturing and services sectors that account for more than two-thirds of the economy, dropped to 52.3 in November from 53.4 in October.