What’s next? – DAX 30.10.17

The DAX futures were 61 percent into green territory on Monday at 13,216 points, as market participants prepared to receive further economic reports from Europe and the US.

No relevant data was released on Friday. The German benchmark ended last week at 13,217.54, adding 84.26 points or 0.64 percent, supported by a dovish rhetoric from the European regulator.

On Friday, Germany stocks were supported by industrials, software and technology

The best performers of the session were Volkswagen, which added 4.47 percent to 152.00,Linde rising 3.00 percent to 189.00 and Siemens up 2.21 percent to end at 120.50.

The worst performers of the session were Commerzbank, which fell 1.70 percent to finish 11.880. Deutsche Bank taking a 1.67 percent loss at 14.160 and Deutsche Boerse down 1.19 percent to 90.030.

Last week, the European Central Bank decided to reduce the volume of its monthly asset purchases from 60 billion euro to 40 billion euro.

While the decision was widely expected, the euro rapidly fell under pressure, leaving room for other currencies, especially the US dollar, to take a leading position.

Scaling down its monetary stimulus programme could be interpreted as a sign of recognition that the economy is growing in way consistent with ECB standards.

Nevertheless, ECB President Mario Draghi reassured that it is still too soon to talk about a full suspension of quantitative easing and even more to think of interest rate hikes.

Ahead in the session, attention will be directed to the following economic reports:

• German retail sales at 07:00 GMT, with a 0.6 percent build seen for September.
• German consumer price index for October, with an estimated increase of 0.1 percent.

Fort Financial Services