What the German stock market is up to tomorrow
GERMANY’S SACRAMENTO, Calif.
(AP) The euro zone’s second largest economy has been on a tear since Chancellor Angela Merkel took office in late 2015.
The euro has gained against the dollar and against gold and silver.
It is trading near a record high of $1,275 a euro.
But the gains have slowed in recent months as the euro zone struggles to recover from the economic recession that killed about 10 million people.
Inflation is soaring and the economy has slowed significantly.
The International Monetary Fund has said that Germany’s unemployment rate was over 16 percent as of March 2018.
It said the country would need a “massive, sustained” boost of about 10 percent of the country’s gross domestic product by 2030 to achieve full employment.
Merkel has repeatedly called for a more targeted stimulus to bring unemployment down to a more manageable level.
But many economists and economists say the country should be able to do more.
“We are living in the most advanced economy in the world,” said Joerg Kliment, head of the economic research group in the Institute for Economic Research in Frankfurt.
“If we don’t act, we will go down again.
And then the euro will crash again.”
Germany has seen a spike in imports and exports in recent years as its manufacturing sector has suffered from falling demand from China and other countries.
It has also been hit by the fallout from the debt crisis in the euro area.
The German central bank has said it will not support the government’s austerity measures, including cuts in wages and tax breaks.
That could cause a political headache for Merkel as she tries to lead a conservative bloc that could be seen as a counterweight to the center-left Social Democrats.
German stocks fell more than 5 percent Tuesday, the biggest one-day drop since December 2016.
The DAX, -0.11% index fell as much as 4.6 percent, while the FTSE 100 fell 3.5 percent and the FCA fell 4.4 percent.
The FTSO 100 was down 3.7 percent.
Germany’s largest banks have been hit hard by the debt-fuelled economic crisis, with the government reducing interest rates and increasing the capital requirement on the nation’s biggest banks.
Germany had the world’s third-largest economy in 2019, according to the World Bank.
The U.S. and Japan followed closely behind.