The DAX index is showing limited movement in the Friday session. Currently, the DAX is at 13,043.50, up 0.27% on the day. On the release front, the week ended on a positive note, as German Ifo Business Climate improved to 117.5, above the estimate of 116.6 points. There are no other events on the schedule.
The ECB changed directions and chopped its asset purchases at the November rate meeting, so analysts were eager to read the details of that meeting. The minutes, published on Thursday, stated that there was “broad agreement” among policymakers that further stimulus was still needed to boost inflation towards the ECB’s target of close to 2 percent. The minutes noted that some policymakers wanted the ECB to announce an end date to the asset purchases, but in the end, members decided to extend the program by 9 months, to September 2018.
The DAX continues to hover at high levels, buoyed by a robust German economy. There was positive news on Friday, as business confidence improved in November. On Thursday, German Final GDP in the third quarter accelerated to 0.8%, its strongest quarter since 2014. The manufacturing sector has looked sharp, and German Manufacturing PMI for November improved to 62.5, its highest level since 2010. Eurozone Manufacturing PMI also kept pace, climbing to 60.0, compared to an estimate of 58.3 points. Manufacturing sectors in Germany and the eurozone have been buoyed by an increase in global demand and stronger domestic consumption.
