DAX30 Unchanged After German IFO Meets Estimates
German IFO indices for April were released this morning at 9:00 am BST. Data was expected to show a slight improvement compared to March readings. Actual data came in slightly better than expected. Headline business climate index moved from 93.3 to 93.6 (exp. 93.4) while expectations subindex jumped from 91.2 to 92.2 pts. On the other hand, current conditions index dropped from 95.4 to 95.0 while market expected an increase to 96.0. Overall, data showed no major changes in moods in April and market reaction also was minimal.
IFO economists noted that while banking turmoil had no impact on companies’ sentiment, German economy is still lacking momentum. However, exports expectations have improved while share of companies that want to raise prices has dropped.
9:00 am BST – Germany, IFO indices for April.
- Business Climate: 93.6 vs 93.4 expected (previous: 93.3)
- Expectations: 92.2 vs 91.1 expected (previous: 91.2)
- Current Conditions: 95.0 vs 96.0 expected (previous: 95.4)
DE30 trade little changed in the 16,000 pts area following the release while EURUSD ticked higher and moved above 1.0990 mark. However, scale of the move on EURUSD did not exceed 0.1% in the first 5 minutes after German IFO data release.
DE30 trades in the 16,000 pts area. Index barely saw any reaction to the German IFO data. Source: xStation5