DAX Unchanged as German Inflation Reports Within Expectations

The DAX is showing little movement in the Wednesday session. Currently, the DAX is trading at 12,528.75, up 0.03% on the day. On the release front, German Final CPI posted a small gain of 0.1%, matching the estimate. German WPI gained 0.3%, above the forecast of 0.1%. Eurozone data met expectations, with Employment Change gaining 0.4% and Industrial Production posting a gain of 0.1%.

Germany has enjoyed robust growth in 2017 and has helped lift the entire eurozone economy. Still, the country finds itself grappling with stubbornly low inflation, which has also been a chronic problem in the US, Japan and throughout the Eurozone. German Final CPI, the primary gauge of consumer inflation, slowed to 0.1% in September, down from 0.4% in the August release. German WPI rebounded with a gain of 0.3%, after failing to post a gain for three consecutive months. On the employment front, there was positive news as Eurozone Employment  posted a second straight gain of 0.4%. This reflects stronger employment numbers in the eurozone, as stronger economic conditions have improved the labor market and pushed unemployment rates lower.

There’s no arguing that the German economy hasn’t missed a beat in the first half of 2017, but analysts are divided on the extent of the momentum. The German Economy Ministry is predicting that the economy could slow in the second half of 2017, and is holding to its forecast of 1.5% growth this year. The BDI Group is projecting an expansion of just above 2.0%, while the International Monetary Fund has pegged growth at 1.8% for 2017. Strong growth in the second half would be good news for the Eurozone and should  be bullish for European stock markets.

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Economic Calendar

Wednesday (September 13)

• 2:00 German Final CPI. Estimate 0.1%. Actual 0.1%
• 2:00 German Final WPI. Estimate 0.3%. Actual 0.1%
• 3:00 Eurozone Employment Change. Estimate 0.3%. Actual 0.4%
• 5:00 Eurozone Industrial Production. Estimate 0.1%. Actual 0.1%
• Tentative – German 10-y Bond Auction

Upcoming Events

Thursday (September 14)

• 11:30 German Buba President Jens Weidmann Speaks

*All release times are EDT

*Key events are in bold

DAX, Wednesday, September 13 at 7:05 EDT

Open: 12,495.50 High: 12,541 Low: 12,493.50 Close: 12,528.75

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