DAX 30 Fundamental Forecast – September 5, 2016

The DAX 30 is trading at 10556.00 in the green as the euro eases against a stronger US dollar. The index is quiet as traders around the globe wait on US jobs data due later in the session.  Money has flowed out of European stock funds every week for more than six months, a stretch that is longer than the previous record set during the financial crisis.

Few see the negative flows abating soon, with earnings weak, banks struggling across the Continent and the political landscape in flux.

Flows were negative for the 29 weeks through Aug. 24, according to data tracker EPFR Global. That marks a record since the company began collecting this data in 2002 and eclipses the 27-week run of outflows that ended in February 2008.

In Germany, utilities companies E. ON and RWE weighed down the DAX, losing 3% each. Meanwhile, personal products company Beiersdorf lost 2.7%, while life science company Bayer and kidney dialysis company Fresenius Medical Care shed 2.2% and 2%, respectively.

German shares pared early gains to trade flat on Friday, as investors remained focused on the upcoming U.S. jobs report, which could provide important clues on the timing of the next increase in the Fed funds rate.

Oil prices recovered some ground after losses of more than 3 percent Thursday, but remain on track for their biggest weekly losses since mid-January amid signs of inventory builds and doubts over potential OPEC action to freeze output.

Meanwhile, on a relatively light day on the economic front, preliminary data from Eurostat showed that Eurozone producer prices continued to fall in July, but the pace of decline eased for a third consecutive month.

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Upcoming Economic Events that you should be monitoring:

 September 5, 2016

Government Bond Auctions

Date Time Country Auction

Sep 06 11:00 Austria Holds bond auction

Sep 06 11:30 UK 1.5% 2026 Gilt

Sep 06 11:30 Germany Holds I/L bond auction

Sep 07 10:30 Denmark Holds bond auction

Sep 07 11:03 Sweden Holds bond auction

Sep 07 11:30 Germany Eur 5bn 0% Aug 2026 Bund

Sep 08 11:00 Ireland Holds bond auction

Sep 08 17:20 Italy Announces details of bond auction