DAX 30 Fundamental Forecast – September 13, 2016

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Published: Sep 12, 2016, 11:33 GMT+00:00

The DAX plunged on Monday following cues from Wall Street on Friday. The DAX is down 188 points to 10385 with no data events scheduled today. Germany

DAX 30 Fundamental Forecast – September 13, 2016

The DAX plunged on Monday following cues from Wall Street on Friday. The DAX is down 188 points to 10385 with no data events scheduled today. Germany suffered an unexpected blow as exports dropped at their fastest rate since the financial crisis. German figures showed its exports were 10 per cent lower than a year earlier – the biggest fall since 2009.

Europe’s main stock markets slumped at the start of trading on Monday, mirroring a slide across Asia caused by the prospect of a US interest rate hike this month.

London’s FTSE 100 index shed 1.3 percent to 6,690.12 points compared with the close on Friday. Frankfurt’s DAX 30 tumbled 1.8 percent to 10,380.46 points and the Paris CAC 40 retreated 1.7 percent in value to open at 4,415.23.

Speculation that the Fed may act as soon as this month on rate tightening had appeared to be off the table following a string of weak data. But on Friday, US Federal Reserve Bank of Boston President Eric Rosengren renewed speculation of a hike when he said in a speech that higher rates were needed to prevent the economy from overheating.

That sent Wall Street tumbling on Friday, sentiment that fed into Asian trading on Monday.

Geopolitical concerns had already been inflamed by North Korea’s fifth and biggest nuclear test, ratcheting up a threat that its rivals and the United Nations have been powerless to contain.

North Korea has completed preparations for another nuclear test, South Korea’s Yonhap News Agency reported on Monday, citing South Korean government sources.

In commodities, oil prices extended Friday’s 4% fall in Asia after reports showed increasing oil drilling activity in the US, indicating that producers can operate profitably around current levels.

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Upcoming Economic Events that you should be monitoring:

September 13, 2016

CNY	FDI – Foreign Direct Investment (YTD) Y	2	4.3
AUD	RBA Assistant Governor Kent Speech	2
CNY	Retail Sales Y	2	10.2	10.3
CNY	Industrial Production Y	2	6	6.1
EUR	Wholesale Price Index M	2	0.2
EUR	Wholesale Price Index Y	2	-1.4
EUR	Consumer Price Index Y	2	0.4	0.4
EUR	Index of Consumer Prices M	2	-0.1	-0.1
EUR	Index of Consumer Prices Y	2	0.3	0.3
EUR	Consumer Price Index M	2	0.1	0
GBP	Producer Price Index – Input M	2	3.3	0.5
GBP	Producer Price Index – Input Y	2	4.3	8.1
GBP	PPI Core Output Y	2	1	1.3
GBP	Producer Price Index – Output M	2	0.3	0.3
GBP	Producer Price Index – Output Y	2	0.3	1.1
GBP	PPI Core Output M	2	0.4	0.2
GBP	Consumer Price Index M	2	-0.1	0.4
GBP	Consumer Price Index Y	3	0.6	0.7
GBP	Core Consumer Price Index Y	3	1.3	1.4
EUR	ECB President Draghi’s Speech	3
EUR	ZEW Survey – Economic Sentiment	3	4.6	6.7
EUR	ZEW Survey – Current Situation	2	57.6	56
EUR	ZEW Survey – Economic Sentiment	2	0.5	2.5
USD	10-Year Note Auction	2	1.503
USD	Monthly Budget Statement	2	-113

Government Bond Auctions

Date Time Country Auction

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

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