Data on industrial production in Germany disappointed investors. Thus, the indicator fell in May with the fastest pace since April 2012 by 1.8%, while analysts had expected growth by 0.3%. Compared with the same period of the last year the growth totaled 1.3%, against expected 3.7%. It should be noted that the labor market situation in Germany worsens and the consumer confidence index has fallen to a minimum for 6 months.
Depreciation of the euro should support exporters and help to increase sales of products of German industry. It is worth noting that the growth potential of the German stock market is very limited by psychological level of 10,000 and we expect a significant correction of DAX30 index in the medium term.
Wish you the profits!
FXFINPRO Capital Analytical department.