DAX 30 Fundamental Forecast – September 12, 2016

The DAX 30 eased 56 points to 10619.00 as the euro continued to rally weighing on equities. The lack of additional stimulus also disappointed stock buyers. The euro maintained its upward trend against other most major currencies on Friday after the European Central Bank kept its monetary policy unchanged on Thursday. For the first time in more than two years, ECB President Mario Draghi neither announced new stimulus measures nor signaled they were in the pipeline after the bank’s decision to maintain its current bond-buying policy.

An easy policy environment is expected to continue for now, but recent gains in commodity prices and inflation expectations may persuade ECB officials to scale back its stimulus program — the process known as tapering — in the longer run, some analysts say.

Germany’s DAX 30 ended down 0.7% at 10,675.29, but it dropped by as much as 1.7%. At one point, only shares of air carrier Deutsche Lufthansa traded higher. They closed up 3.6%.  The German index is home to shares of several exporters, and a stronger euro makes goods more expensive for holders of other currencies. Among exporters, car makers Volkswagen AG and Daimler each ended 0.7% lower. Chemical maker BASF declined 0.7%.

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Upcoming Economic Events that you should be monitoring:

 September 12, 2016

Government Bond Auctions

Date Time Country Auction

Sep 12 11:30 Germany Eur 2bn Mar 2017 Bubill

Sep 12 13:00 Norway Details of bond auction on Sep 14

Sep 13 11:00 Netherlands Eur 2-3bn 0% Jan 2022 DSL

Sep 13 11:10 Italy Holds bond auction

Sep 14 11:05 Norway Holds bond auction

Sep 14 11:30 UK 0.125% 2046 I/L Gilt

Sep 14 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund

Sep 15 10:30 Spain Holds bond auction

Sep 15 11:03 Sweden Holds I/L bond auction

Sep 15 11:50 France Holds bond auction