The EU has cut growth forecasts for Germany for the second time this year, as trade tensions and a Chinese slowdown weigh on the traditional economic powerhouse of the region.
Germany is only expected to grow at a rate of 0.5% this year, according to the latest economic forecasts by the European Commission. It will be the second-worst economy across the EU in terms of growth, with only Italy looking more downbeat. It comes after the institution lowered Germany’s growth expectations from 1.8% to 1.1% in February.
The German economy, driven by manufacturing and exports, has been impacted by stalling growth in China, trade tensions and the introduction of new emission standards on its car industry. Data out last month showed German exports and imports dropping by more than analysts had expected.
The US and China have been negotiating for months, bring the Equity Markets along for the ride in hopes that a deal will be made. However, as of this past Friday, President Donald Trump has followed through on his threat to raise tariffs on $200 billion on Chinese goods. China said it would retaliate, ultimately adversely affecting the world economies.
So where is price heading next on the DAX, lets go to the charts?
Price broke the long term monthly trendline.
Price is also showing negative divergence on the monthly chart.
Thus the chart suggest price is heading down to the monthly demand at $10400.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.