DAX higher despite mixed data

The German equity market is in the black, even though the economic indicators have not all been positive.

The German jobless rate ticked up in October, and is now at its highest rate since April 2011. The level of inflation dropped by 0.2% in October, worse than expected, and both reports are signs that the economy is in decline.

Despite these disappointing results, the DAX is up 0.3% due to the eurozone retail purchasing managers index (PMI), which came in at 48 in November compared with the October reading of 47.7. The overall positive sentiment has boosted German stocks, despite low trading volumes and market volatility as a result of Thanksgiving.

The Italian market index is up 1.1% after the cost of borrowing for the Italian government dropped from 4.11% to 4.01%. This tells us that investors are more confident in the government’s ability to repay its debts, which is another positive indicator for the region.

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.