The DAX index has recorded sharp gains in the Friday session. Currently, the index is at 11,283, up 1.38% on the day. In economic news, there is only event. German Ifo Business Climate, fell for a fifth successive month, dropping to 99.1 points. This was shy of the estimate of 100.7 points.
German stock markets have moved higher on Friday, and the DAX has climbed to its highest gains since late November.
The catalyst for the upward movement was positive news from U.S. technology companies on Thursday. On the NASDAQ, Xilnix, Lam Research and Texas Instruments all posted better-than-expected results, and this has boosted Asian and European markets on Friday. Most listings on the DAX are in positive territory, and Deutsche Bank, Daimler and Volkswagen have all recorded gains above 2 percent.
There were no surprises from the ECB on Thursday, as the central bank maintained policy as well as guidance for “rates to remain at their present levels at least through the summer of 2019”. With the ECB finally winding up its massive stimulus scheme, market focus has shifted to the timing of a rate hike. However, with the eurozone economy showing signs of weakness, we’re unlikely to see a rate hike before the fourth quarter, at the earliest. The ECB remains cautious, and said that risks “have moved to the downside”. This dovish stance indicates that the euro will not be receiving any support from the bank, and will have to rely on stronger data in order to attract investors.
