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    DAX30: economic sentiment index fell in Germany on 23.02.2016

    Significant rise in the stock indices since the beginning of this week was caused by the increase in oil prices and expectations of the market participant that the US Fed would not raise interest rate so far. However, today, the uptrend has reversed into intraday downtrend. Excess of supply of oil puts pressure on oil prices. The price goes down triggering decline in the global stock indices.

    At the opening of today’s session, European indices went down. StoxxEurope600 fell by 0.7%. British stock index FTSE100 also fell, as well as the Pound because of the possible exit of the UK from EU. Referendum on the exit will be held in the UK on 23 June.

    The index of the Frankfurt stock exchange DAX30 fell by 60 points versus yesterday’s closing price.

    The decline in DAX30 was triggered by today’s news on sentiments in German business circles.

    Business optimism index IFO in Germany fell to 105.7 in February against 107.3 in January, reaching the lows since December 2014. It means that sentiments have been lowering in the business circles of Germany for the third consecutive month. Index of economic expectations from IFO in Germany fell to 98.8 in February versus 102.3 in January. The data shows that the pace of the largest economies of Eurozone is slowing down.

    The data caused the decline in the indexс DAX30 and Euro.

    Today’s US news will be released at 17:00 (GMT 2). The news includes consumer confidence index. It is expected that the index will fall against the previous value (97.0 in February versus 98.1 in January).

    American and European indices can go down in case of the negative data. Then the pair EUR/USD will rise, while the index DAX30 will go down.


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