World Economy

DAX Hits Record High as German Economy Thrives

DAX Hits Record High as German Economy ThrivesDAX Hits Record High as German Economy Thrives

The DAX has posted gains in the Friday session. Currently, the DAX is above 13,481, up 0.30% since the close on Thursday. There are no eurozone indicators on Friday.

The US releases key employment numbers, led by nonfarm payrolls. The indicator is expected to soar to 311,000 in October, after a decline a month earlier. However, wage growth could be in trouble, as average hourly earnings is forecast to slow to 0.2%, MarketPlus reported.

No change is expected in the unemployment rate, with an estimate of a sizzling 4.2%. As well, the US releases ISM Non-Manufacturing PMI, which is expected to drop to 58.5 points.

The DAX posted strong gains this week, in response to the release of positive corporate earnings. Automobile sector posted strong gains, led by BMW, Daimler and Volkswagen.

The DAX set another record high on Friday, and the index has been red hot, jumping 9.6% since early September. The robust German economy has helped boost German stock markets, and with the economy expected to record a strong fourth quarter, the DAX rally could continue.

German numbers looked sharp this week, as the largest economy in the eurozone continues to perform well in 2017. Manufacturing PMI remained steady at 60.6, its highest level since April 2011. The German labor market continues to impress, as unemployment rolls declined for a third straight month in October. Unemployment has now dropped in all but two readings since June 2015.

Meanwhile, European stocks clung to modest gains Friday, with German and British blue chips trading at record highs, but a clutch of corporate earnings reports and developments limited the gain for the region’s benchmark. Share-price decliners included Societe Generale SA after the French lender’s fall in profit.

Add new comment

Read our comment policy before posting your viewpoints