DAX posts strong gains of 2.5%
Critical European markets (DBEU) were all trading on a positive note at the end of trading on August 9, 2016. The rise was led by the German index DAX—it rose by a notable 2.5% for the day. The SPDR Euro Stoxx 50 ETF (FEZ) and French CAC 40 also posted gains, but they were less compounded compared to DAX. They rose by 1.5% and 1.2%, respectively.
Among the other major European indexes (IEV), the Portugal PSI 20 Index rose by 1.5%, while the Belgium BEL200 index rose 0.85%. In non-Eurozone markets, the positive trend was evident. The United Kingdom’s (EWU) FTSE 100 was trading higher by 0.62% and Sweden’s (EWD) OMX Stockholm 30 rose by 1.9%.
Strong German release to a ensure GDP beats forecasts?
The rise in the German DAX on August 9 was mainly due to the German trade balance release. The next major event that could have a major impact on DAX is the German preliminary GDP release on August 12. Any rise above the forecast of 0.3% could result in a strong positive movement in DAX. Germany’s final inflation numbers are scheduled to release on the same day. Markets expect a volatile session on August 12.
Impact on the market
Meanwhile, in the world of ADRs (American depositary receipts) trading on US exchanges, German ADR Deutsche Bank (DB) rose by 1.9% on August 9. Among other notables, SAP SE (SAP), a software company, rose by 1.6%. In contrast, the Aixtron (AIXG) was trading nearly flat with a slight rise of 0.16%.