Cautious German outlook weighs on DAX

A cautious economic outlook from the German government has resulted in the country's DAX stock exchange declining in worth slightly this afternoon (August 10th).

The latest monthly report published by the country's Federal Ministry of Economics and Technology has indicated that the eurozone's primary financial power is facing "substantial risks" from the economic bloc's ongoing debt crisis, AFP reports.

According to this study, Germany's economy is continuing to show itself to be "fairly robust" despite the difficult environment as eurozone member states such as Spain and Greece continue to struggle with their deep-seated financial issues.

"Nevertheless, following the strong growth seen in the first quarter, the momentum will have slowed noticeably given the weaker international trend," it added.

Yesterday, the DAX slipped after fresh data from the Federal Statistics Office revealed that German exports fell by 1.5 per cent in June when compared to one month previously.

And this downward trend has continued today, with the German index slipping by 0.78 per cent to 6,910 points.