DAX index trading 0.98% lower at 11,565 as investor’s got hit by terrible German and EU macro data. The German ZEW Economic Sentiment came in at -44.1 below expectations of -28.5 for August, the Current Situation came in -13.5 also below expectations of -7 in August. Another disappointment also came from the EU Economic Sentiment which came in at -43.6, below expectations of -21.7 in August.
Weakness of Yuan continues as PB of China set the fixing at 7.0326 versus yesterday’s fix of 7.0211. Poltical turmoil in Italy also weighs on traders sentiment as Prime Minister Salvini aiming for snap election as early as October.
DAX index makes today fresh two month lows, dragged by Henkel AG -6.75%, Deutsche Lufthansa AG -4.39%, Thyssenkrupp AG -2.89%, and Deutsche Bank -2.80%. On the other hand, Fresenius SE is 1.29% higher while Deutsche Telecom is 0.29% higher.
Recent disappointing macro news support a dovish stance from European Central Bank as poor economic data may push the European Central Bank to proceed with further stimulus to support the EU economy in September.