The index of import prices in Germany fell 0.1% in May compared to the previous month, the German statistical office Destatis said in a release on Friday. The figure decreased by 0.2% on an annual basis. The import prices index, excluding crude oil and mineral oil products fell by 0.2% in May compared to the previous month and by 0.3% year-on-year. Meanwhile, the export prices index in May was 0.1% lower than in April and 0.7% higher than in May last year. The rates of change were 1.3% each in March and April.
European stock markets traded flat to higher in Friday's premarket trading as world leaders gather in Osaka, Japan for a summit of the Group of Twenty (G20). The highlight of the event will be the much-anticipated meeting between Donald Trump and Xi Jinping which comes amid a long-running trade conflict between their two countries. The Chinese president is said to present Trump with a set of terms that Washington should meet before Beijing agrees to settle the trade war. However, US Trade Representative Robert Lighthizer reportedly told the Chinese negotiating team that the trade deal that is being negotiated will not be "balanced," while White House economic advisor Larry Kudlow hinted at the possibility of additional tariffs on goods coming from China. As far as European economic data is concerned, the German import price index, British GDP data, and Eurozone inflation figures will all be released after the opening bell. The FTSE 100 traded just 0.03% below the flat line in the premarket session, while the DAX added 0.11%. In Paris, the CAC 40 slipped 0.04% an hour before markets open for trading. The euro was 0.06% lower against the dollar to sell for 1.1362 at 7:51 am CET, while the pound traded flat versus the greenback, changing hands for 1.2672.
The overnight session oscillated around the point of control, before breaking above the value area high around 8am. There were no surprises to see the sharp increase from the point of control to the value area high, as this was a low volume area. You can see the zone to which I am referring on the chart below.