DAX Recovers Strongly, But Worries Remain
The German DAX stock index has demonstrated gains today, erasing most of the losses seen on Monday. The DAX is trading at 10.818 level, having gained 0.70% on the day.
European stocks remain under pressure, as global growth worries persisted and oil prices fell for a third straight session on concerns about oversupply, sending energy stocks tumbling.
In economic releases, Germany's business confidence slid to its lowest level in over two years. German Ifo business climate index fell for the fourth month in a row to 101.0 in December, weaker than consensus forecast of 101.8. The business expectations index, which measures attitudes toward business prospects over the next six months, fell to 97.3 in December (the lowest reading since November 2014) from 98.7 in November, missing expectations for a reading of 98.3. The current assessment sub-index dropped to 104.7 in December from 105.4 in November, compared to expectations for 104.9.
Meanwhile, traders watched Brexit developments closely and looked ahead to Wednesday's Federal Reserve meeting for clues on what to expect next year. Yesterday, Britain's Prime Minister Theresa May announced that a parliamentary vote on her Brexit deal would take place in January.