The German biggest index, which consist of blue chips companies, has stated the begin of the week in negative numbers. Analytics say this move probably caused tariffs between the US and China. Next possibility is just a correction after big pump.
he markets jumped after the ECB policy meeting, when the ECB said that it had no intention of raising interest rates prior to the second half of 2019. The ECB pledged to taper its bond-purchase program to EUR 15 billion/month, in October, down from the current pace of EUR 30 billion/month. The program will wind up at the end of the year. However, investors detected a ‘dovish flavor’ to the announcement, as the ECB added that interest rates would remain steady “at least through the summer of 2019”, giving policymakers plenty of wiggle-room to delay any rate hikes. The markets were anticipating a rate hike shortly after the end of the bond-purchase program, so this announcement was a disappointment, according to marketpulse.com
The DAX index has started the week with sharp losses, continuing the downward trend seen on Friday. Currently, the DE30 is trading at 12 837. The value hikes today were more than 2 percent. There is no eurozone indicators that could move the price so high. After the statement of Mario Draghi, it has been disappointment for Euro, but great news for DAX. Zero interest rates could make the investors believe, that economy is still not at the top and there could be place for another growth because of cheap loans. But the indexes in Germany had noticed the economic slowdown.