DAX with Weak Start to Trading – Italian Government Formation in Focus

By 23/05/2018News

23/05/2018 – 10:00 am: In the middle of the week, the leading German index starts the trading day with a minus of around 0.6 percent and expands this minus to 1.4 percent in the first few minutes of trading. The Dax is currently trading at 13,008 points.

Against the backdrop of negative targets from the USA and the Asian stock exchanges, the trading day on the Frankfurt trading floor began with a minus. During yesterday’s trading session, the Dax still reached its highest level since January 2018, but the selling pressure seems to have increased this morning. The Dow Jones Index closed at 24,834 points, down 0.72 percent. The broader S&P 500 lost around 0.3 percent and closed the trading day at 2724 points. Analysts cite the currently difficult trade negotiations between the US and China as the background to the weaker day.

With Argus eyes, investors worldwide are following the continuing difficult formation of a government in Italy. Currently, the members of the alliance of the 5-star movement and the “Lega” party still seem to be looking for a head of government. A shaky game, not least for the European single currency. At 1.1750 US dollars, the euro is currently down about 0.2 percent.

On the economic and business cycle news page, investors are waiting for the publication of several purchasing managers’ indices from Germany and the euro zone. After the close of the European stock market, the US Federal Reserve still publishes its minutes from the beginning of May.

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