DAX half-heartedly heads higher

The German preliminary monthly consumer price index figures have eroded early market moves.

The release of better-than-expected Chinese manufacturing data over the weekend and the performance of the S&P 500, both contributed to European equity markets heading higher in early trading. The Germany 30 once again flirted with the 10,000 level in the first few minutes of the day only to lose momentum at the last. German preliminary monthly CPI figures shrank at a slower pace than in the previous month however, they were still worse than anticipated. This reflects the pattern shown over last week that my colleague David Madden outlined on Friday.

Most eyes are already trained on Thursday’s announcement from the European Central Bank president Mario Draghi. The promised market intervention from last month has already seen the euro strengthen by 250 pips against the US dollar. This highlights how markets have factored in action from the ECB rather than just rhetoric. The volatility index is currently at particularly low levels however, in the run up to Thursday this of course could change.

Germany 30 chart

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