The DAX is lower in the Friday session. Currently, the index is at 12,933.50, down 0.33% on the day. The final trading day of 2017 has just one key event, German Preliminary CPI. The indicator is expected to accelerate to 0.5% in December. In the eurozone, M3 Money Supply and Private Loans both matched their estimates of 4.9% and 2.8%, respectively.
In a nod to stronger economic conditions in the eurozone, the ECB announced in October that it would begin tapering its monthly bond purchases in January 2018, from EUR 60 billion to 30 billion. Mario Draghi & Co. are playing it safe, however, as the ECB has extended the purchases through September 2018. If inflation remains below the ECB target of around 2.0%, the purchases will likely continue after that date. Economic growth in the bloc has been steady, with GDP expanding 0.7% in the third quarter, after a 0.6% in the second quarter. Of note, the ECB upwardly revised its 2018 growth forecast from 1.8% to 2.3%.
Investors have given a thumbs-up to the stronger German and eurozone economies, and the stock markets have responded with substantial gains. The DAX has climbed an impressive 13.8% in 2018. Data in the fourth quarter has been strong so far, and expectations are that the positive trend will continue into 2018, which bodes well for the DAX.
