DAX hit by PPI data

The German equity benchmark is offside this morning after a weak PPI report.

The DAX is trading at 9633, down 0.1% on the day after Germany revealed that PPI slipped by 0.1% in April. The report comes one day after the German central bank's statement that the economy will grow at a slower pace. Today’s producer price index report is nothing to panic about, but it does highlight the decline in economic growth. This adds up to the big picture that the European Central Bank may introduce a monetary easing policy to try and tackle growth. We are not at the stage where bad news for the economy is good news for the stock market.

As Brenda Kelly stated, the DAX has an intraday support of 9630-5. Tomorrow the Federal Reserve will release the minutes of its latest meeting at 7pm (London time). If the Fed maintains its dovish stance we could we could head towards the recent high of 9812.

Germany 30 chart

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