The sharp swings continue for the DAX index, as the volatility continues in the global equity markets. Currently, the DAX is at 12,091, down 1.20%. There are no major German or European events on the schedule. German PPI gained 0.5%, following two successive declines. Later in the day, eurozone trade balance is expected to show a surplus of EUR 24.2 billion, down from EUR 26.8 billion a month earlier. On Tuesday, the eurozone releases consumer confidence.
The DAX index posted strong gains last week, climbing 1.49%. However, the index has reversed directions on Monday and posted sharp losses. Risk appetite soured on Friday, after President Trump issued an executive order to blacklist Huawei, a Chinese telecom company. Last week, Trump issued a moratorium on tariffs against European automakers, but investors remain wary. German automaker listings have posted sharp losses on Monday – BMW is down 2.03%, Daimler has fallen 1.60% and Volkswagen has declined 1.22%. With U.S.-China talks on hold, traders should be prepared for more swings this week.
