DAX Pares Losses Post PMI Data
Fiona Cincotta August 22, 2019 7:00 AM
The persistent weakness in what was once the powerhouse of Europe doesn’t bode well for economic growth in the third quarter as Germany remains caught up in the US – Sino trade dispute. As global trade tensions show no signs of easing up and amid slowing demand from China and continued car industry woes, Germany entering a recession in the third quarter is almost a given.
Following the release of the PMI data Dax shot higher, paring opening losses, reaching a session high of 11840. Rather than weaker data hitting risk sentiment, we saw the Dax gaining ground on stimulus optimism and the weaker euro, a big plus for an exporter country such as Germany. The ky level for the Dax is 11860. A break through here could point to a brighter outlook for the index and indicate more upside is to come.
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