The European bourse Germany30 [DAX] fell at open though many analysts predicted a rise.
Reuters reported, “The DAX was set for its ninth consecutive weekly gain, the longest winning streak in 17 years,” however the opening was not as predicted, with a smart drop from 11845 to 11799.
Those stocks that are linked to the falling euro, now at its 12 year low this week, were the principal influencers in Thursday’s small climb on the DAX, namely those in car manufacturing, travel and leisure, and real estate sectors.
However, Friday saw Germany’s Wholesale Price Index (MoM) (Feb) up to 0.5%, above expectations of -0.2% and previous of -0.4%, giving a positive bearing for the euro.
Other data on Thursday included the value of European Industrial Production (MoM) (Jan) falling to -0.1%, below expectations of 0.2% and previous of 0.3%; a negative for the euro. French and Spanish CPI figures however maintained the EURUSD level. French CPI (MoM) (Feb) rose to 0.7%, above the forecast of 0.6% and previous -1.0%; Spanish CPI (YoY) (Feb) equaled expectations of -1.1%, above previous -1.3%; all positive figures for the euro versus other currencies.
German CPI announced Thursday, remained at last month’s levels, not previously seen since January 2013. The figure month on month for February was 0.9%. This lack of change in the price of goods and service in Europe’s strongest economy influenced the euro and the index to hold steady against predictions.
Friday will not see any more European economic data so the strength of the dollar, which will be influenced by U.S data will be the determining factor on both the euro and European bourses movement. The monthly figure for the U.S PPI, Producer Price Index, which measures the change in the price of goods sold by manufacturers, is due Friday afternoon GMT and is expected to be bullish for the USD at 0.3% versus previous of -0.8%.
MT4 Chart: Germany30 [DAX]
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