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

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.