Yahoo Finance DAX Index Daily Fundamental Forecast – December 6, 2017
The DAX index continues to consolidate and range but is clearly beginning to feel the pressure over the lack of progress in the coalition talks in Germany as well as the Brexit talks as well. The global stock markets are also likely to have a bearing on the DAX and this is likely to add pressure on the index in the short term.
DAX Likely to be Under Pressure
There has been a big setback to the Brexit talks and this has affected both the UK and the Eurozone as well. The DUP party in Ireland has refused to recognise the hard Irish border and this basically goes against the plan for the deal from the UK PM May. This has stalled the progress in the talks and the UK and the Euro leaders have not been able to progress to phase 2 of the talks which would involved discussions on trade. There can be no progress in the talks until and unless the deal with the Irish borders is sorted out.
This has placed a lot of pressure on the euro and the stock markets around Europe and that is one of the reasons why we saw the DAX close lower yesterday. The US stock indices also closed lower for the day yesterday as the slow progress of the tax reform bill and the anticipation over the next rate hike from the Fed seems to be weighing a lot on the stock markets. All of these factors are likely to lead to a slow and low opening for the DAX later in the day today.
Looking ahead to the rest of the day, we do not have any major economic news from Germany or the Eurozone and hence we are likely to see some weak trading as the DAX follows global sentiment and moves lower. It remains to be seen whether the lows of the range would hold for today.
This article was originally posted on FX Empire
