After a record day for the DAX, a few words of warning from well-known investor Carl Icahn encouraged dealers to book their profits early. However, the German equity benchmark has only shed 0.2%, so it is still in a better position than other eurozone markets. This morning, the German ZEW economic sentiment came in at 54.6 for November, in line with expectations, whereas the figure for the eurozone as a whole was 60.2 – well below the 63.1 consensus. The report confirms Germany’s relative strength in the region.
The Organisation for Economic Cooperation and Development (OECD) has cut its German growth forecast for 2014 from 1.9% to 1.4% today. This downgrade is playing on investors’ minds.
We are not expecting any further announcements from Germany today, but the comments Federal Reserve member Charles Evans is due to make at 7.15pm (London time) may move global equity markets. Mr Evans talked down the possibility of tapering this side of Christmas in October. Since then, the unemployment rate has risen in the US, so it is possible his statement will provide a boost to stocks.