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DAX 30 Index Could Pullback on Recovery Fund Delay, AstraZeneca Shot Ban

DAX 30 Index Could Pullback on Recovery Fund Delay, AstraZeneca Shot Ban 2021-04-01 07:00:00 Daniel Moss, Analyst DAX 30, EU Recovery Fund, AstraZeneca Vaccine, Coronavirus Cases, Restrictions – Talking Points: Equity markets largely gained ground during APAC trade as investors mulled the prospect of additional US fiscal stimulus. The delayed ratification of the EU Recovery Fund and a ban on AstraZeneca’s vaccine may weigh on the German DAX 30 index in the near term. Asia-Pacific Recap Equity markets gained ground during Asia-Pacific trade as investors digested President Biden’s $2.2 trillion infrastructure spending package proposal. Australia’s ASX 200 climbed 0.56% on better-than-expected retail sales data. Japan’s Nikkei 225 also moved higher, alongside Hong Kong’s Hang Seng Index and China’s CSI 300.

Euromoney Auctions of EU-bills and primary dealers to help €750 billion borrowing

Photo: Reuters At the end of March, investors were absorbing an intervention by the German Constitutional Court that has delayed that country’s ratification of the €750 billion recovery fund under the NextGeneration EU (NGEU) budget. All 27 member states must ratify this. The challenge comes from German academics who, it appears, object to the size and extended maturity of EU borrowing to fund economic recovery from the near-term emergency of the pandemic through long-term investments in green and digital technology. The complainants see this as de facto fiscal union. It is a reminder, suggests Reinhard Cluse, economist at UBS, that any steps toward EU integration and burden-sharing are – and will likely remain – subject to intense legal scrutiny in Germany.

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