Trade data offer a mixed signal
China's export sector regained momentum, with exports rising by 23.9%, slightly ahead of market expectations.
Germany also reported a modest improvement in exports, which increased by 0.9%. However, the country's trade balance was weighed down by a much stronger 4.4% increase in imports, largely reflecting higher energy and commodity prices.
Middle East uncertainty keeps investors cautious
Investor sentiment across both Asian and European equity markets has become increasingly subdued as the week draws to a close.
Geopolitical uncertainty in the Middle East continues to dominate the outlook, with the conflicting demands of the parties involved making a diplomatic solution increasingly difficult to achieve. This uncertainty was once again reflected in yesterday's rise in oil prices.
The conflict remains the single largest risk to the global economic recovery, as the outlook for the major economies remains closely tied to developments in energy markets.
Allianz and Munich Re come under pressure
Within the DAX, today's focus will be on quarterly results from insurance heavyweights Allianz and Munich Re.
Both companies disappointed investors with their latest earnings reports, leaving their shares under pressure in pre-market trading.
US jobs data may set the tone
Looking ahead, market direction is likely to be determined by further headlines from the Middle East and the release of the official US non-farm payrolls report later today.
