DAX Slips After Trump Tariffs


The volatility continues for the on Monday. Currently, the DAX is at 11,977 points, down 0.66%. There are no releases out of Germany or the eurozone. On Tuesday, and the release ZEW Economic Sentiment and we’ll also get a look at German CPI.

The trade war between the U.S. and China escalated last week, as the U.S. slapped China with new tariffs on Friday. The move raised tariffs on some $200 billion in Chinese goods from 10% to 25%. The move was announced a week ago, and global equity markets have responded with sharp swings. There are concerns that the U.S. could follow up with 25% tariffs on all Chinese imports, which would target European cars produced in China. This has led to sharp losses for German automakers listed on the DAX. BMW (OTC:) declined 1.0%, Daimler (OTC:)is down 2.2% and Volkswagen (DE:) has dropped 1.2%.

Despite the dramatic rise in tariffs and the Chinese promise to retaliate, talks between the sides continue, with officials scheduled to meet in Beijing. The new tariffs do not apply to Chinese goods that left port prior to May 10, affording a 2-week window for negotiators before the tariffs take effect. The escalation in tensions has shelved a meeting between President Trump and Chinese President Xi, but the two leaders could meet at the G-20 summit in Japan in June.

The week ended on a positive note, as Germany’s improved. The trade surplus widened to EUR 20.0 billion in March, up from EUR 18.7 billion a month earlier. This is the first time that the trade surplus has exceeded the EUR 20-billion level since May. A surge in exports was responsible for the larger trade surplus. German exports increased by 1.5% in March, well above the estimate of -0.3%. This was a marked improvement from February, when exports declined by 1.3%.

Economic Calendar

Monday (May 13)

  • There are no German or eurozone events

Tuesday (May 14)

  • 2:00 German Final CPI. Estimate 1.0%
  • 5:00 German ZEW Economic Sentiment. Estimate 5.1
  • 5:00 Eurozone ZEW Economic Sentiment. Estimate 5.0

*All release times are DST

*Key events are in bold

DAX, Monday, May 13 at 6:15 DST

Previous Close: 12,059 Open: 12,064 Low: 11,940 High: 12,068 Close: 11,979

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