DAX 30 Fundamental Forecast – September 16, 2016

The DAX 30 recovered some of this week’s losses climbing to 10400.50 but well below the 10700 range seen just days ago. Lackluster growth in inflation may force Mario Draghi to extend the ECB stimulus program which could help Eurozone shares. Asian stocks wavered on Thursday as investors grappled with the seemingly diminishing ability of major central banks to stimulate growth, while a tumble in crude oil inflamed already heightened risk aversion.

The U.S. Treasury yield curve hit its steepest in more than two months on Wednesday, while world stock markets edged lower as investors fretted about future U.S. interest rate hikes.

Eurozone inflation remained unchanged in August as estimated earlier, latest data from Eurostat showed Thursday. The harmonized index of consumer prices rose 0.2 percent year-on-year, same as in July. Prices increased for a third straight month. In June, inflation was 0.1 percent.

Headline inflation has been below the European Central Bank’s target of ‘below, but close to 2 percent’ since early 2013. Core inflation that excludes energy, food, alcohol and tobacco, eased marginally to 0.8 percent from 0.9 percent in July. Both headline inflation and core inflation were in line with economists’ expectations. Inflation in the EU accelerated to 0.3 percent from 0.2 percent.

The inflation figure remained negative in 12 member states with Croatia, Bulgaria and Slovakia registering the lowest rates. The highest figures were seen in Belgium, Sweden and Estonia.

German economic sentiment stabilized in September after a modest recovery in the previous month amid mixed signals on exports and industrial production and overall European economy, results of a closely-watched survey showed Tuesday.

The ZEW Indicator of Economic Sentiment held steady at 0.5 points in September, which is well below its long-term average of 24.1 points, the Mannheim-based Centre for European Economic Research/ZEW said. Economists had expected further improvement in the index to 2.5.

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Upcoming Economic Events that you should be monitoring:

 September 16, 2016

Government Bond Auctions

Date Time Country Auction

Sep 15 10:30 Spain 0.75% Jul 2021 Bono, 1.3% Oct 2026 bond & 1.95% Jul 2030

Sep 15 10:50 France Eur 5-6bn 0% Feb 2019 & May 2021 OATs

Sep 15 11:03 Sweden Sek 0.5bn 0.125% Jun 2019 I/L & Sek 0.5bn 4% Dec 2020 I/L

Sep 15 11:50 France Eur 0.75-1.25bn 0.1% Mar 2021 & Mar 2025 OAT

Sep 19 11:00 Belgium Holds OLO auction

Sep 20 11:30 UK Jul 2047 Gilt

Sep 21 10:30 Denmark Holds bond auction

Sep 21 11:03 Sweden Holds bond auction

Sep 21 11:30 Germany Eur 4bn 0% Oct 2021 Bobl

Sep 22 17:20 Italy Announces details of bond auction