The German economy continues to show positive macroeconomic data
If last week we talked about the good macroeconomic data coming out of Germany and the eurozone in response to positive ZEW projections for the coming months and the good GDP results from several European companies. This week, we have learned new positive macroeconomic data which may drive the German economy forward for the next few months.
Yesterday, Wednesday, we learned of the important German GDP data, where there was an increase of 0.3% compared to the 0.1% expected in the fourth quarter, the annual result being a decrease in GDP of 2.7% compared to 2.9% expected.
Today, we also found out that the Gfk index of the German consumer climate, which measures the level of consumer confidence in economic activity, improved, indicating the willingness of consumers to spend. It now stands at -12.9 compared to the -14.3 expected.
On the other hand, Jerome Powell appeared in front of the Congress and Senate of the United States, where the president of the Fed reiterated that the American economy is still far from full recovery, so the stimulus plan will continue. On the other hand, the meeting also assuaged fears about inflation for the time being, indicating that it may still take 2-3 years to reach the inflation target of 2%, which caused a positive close on Wall Street.
Despite this good news, the German DAX gave up just over 0.6%, thus continuing with the correction of the last sessions after setting all-time highs, causing the stochastic to leave its overbought level, although still and for the moment the month of February is being positive with an increase of more than 3.5%.
For the moment, the price is supporting its 18-session black average which acts as its first support level, still trading far from its uptrend line and its 200-session average.
Source: DAX30 daily chart of Admiral Markets MetaTrader 5 platform from November 1, 2019 to February 25, 2021. Realized: February 25 at 12:50 CET. Note: Past performance is not a reliable indicator of future results or future performance.
Price evolution of the last 5 years:
- 2020: 3.6%
- 2019: 25.48%
- 2018: -18.26%
- 2017: 12.51%
- 2016: 6.87%
With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of Microsoft and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.