Germany equities were higher at the close on Friday, as gains in the Basic Resources, Media and Technology sectors propelled shares higher. At the close in Frankfurt, the DAX added 0.66%, while the MDAX index added 0.85%, and the TecDAX index gained 0.19%. Advancing stocks outnumbered falling ones by 460 to 231 and 22 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 4.61% to 19.64. European equity market saw positive closing on Friday supporting high risk appetite among investors and positive momentum surrounding the common currency in broad market.
US Election Updates & Sino-US Trade War Proceedings Upsets Momentum across Key Equity Markets
Asian stocks sank on Monday as fears of faster rate hikes in the United States and uncertainty around the Sino-U.S. trade war deterred investment in riskier assets. Markets are expected to be skittish ahead of U.S. congressional midterm elections on Tuesday. Opinion polls show a strong chance that the Democratic Party could win control of the House of Representatives after two years of wielding no practical political power in Washington, with President Donald Trump’s Republican Party likely to hold the Senate. Asian stocks also saw bearish cues from bearish equity market closing on Friday despite positive macro data as investors were worries over possibility of delay in trade deal between the United States and China, with additional bearish cues emerging from China as President Xi Jinping acknowledged that conditions abroad had created some challenges for the Chinese economy.
While these factors led to overall bearish price action across key Asian markets such as Shanghai, Hong Kong, Japan and India, the downside move was limited owing to promise of lower import tariffs and prospect of broader market access made by Chinese President Xi Jinping. Analysts believe that although trade growth has held steady, concerns are rising in business surveys. DAX Futures trading in international market is down by 0.25% as investor sentiment has turned cautious ahead of US mid term election results and proceedings of Sino-US trade war related talks. European equity markets are expected to follow cues from Asian markets and Wall Street during today’s market session. So there is high possibility for DAX index to open in negative and trade range bound with bearish bias during today’s market hours.
This article was originally posted on FX Empire
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