DAX Shows 2.4% Loss, Falling to 2-Year Low

Forex News

European stocks fell sharply on Thursday. The German DAX stock index fell by 2.4% to trade at 10.932 level. The DAX dropped below the 11.000 level for the first time since December 2016. Overall this week, the DAX has lost 5.25%.

The DAX was pressured by bank and automaker shares fall. Deutsche Bank has dropped 3.55%, Daimler is down 3.28% and Volkswagen has declined 2.73%.

The global stocks fall amid growing doubts about the ability of the United States and China to reach an agreement on trade. Experts point out that the arrest of the chief financial officer of Huawei Technologies Co. may complicate negotiations between the US and China on trade issues.

Germany has posted some positive data after few disappointing reports. Factory orders in Germany rose in October for the third month in a row, not meeting expectations of a decline. Preliminary data from the Federal Statistical Office showed, that factory orders rose 0.3% in October after rising 0.1% in September (revised from 0.3%). Economists had forecast a decline of -0.4%. On annual terms, production orders decreased by -2.7% in October. Economists had predicted -3.1% fall.