The DAX Index has posted sharp losses in the Thursday session. Currently, the index is at 10,452 down 1.7 percent. There are only a handful of eurozone events this week, with no data indicators on Thursday. The U.S. releases employment claims, which is expected to rise to 217 thousand. On Friday, Germany releases Preliminary CPI, which is expected to improve to 0.3 percent.
The roller-coaster ride for investors continues in the United States. After massive losses on U.S equity markets on Monday, the markets bounced back with sharp gains. The spike spread to Asian markets on Thursday, but has failed to ignite German markets, which have posted strong declines. The DAX is currently at its lowest level since December 2016 and has plunged 9.2 percent in December. This follows a drop of 6.67% in October, so it’s no surprise that risk appetite has dropped sharply.
The sole eurozone indicator on Thursday was the monthly ECB economic calendar. The prognosis was pessimistic, with the bank projecting that global economic activity would soften in 2019. As for the eurozone, the report found that GDP increased by just 0.2% in the third quarter, after growth of 0.4% in the prior two quarters. Weak growth in Europe and the ongoing global trade war has hurt the eurozone manufacturing and export sectors, and is likely to continue to weigh on European equities as we head into the New Year.
