Germany equities were higher at the close on Tuesday, as gains in the Consumer & Cyclical, Pharmaceuticals & Healthcare and Utilities sectors propelled shares higher. At the close in Frankfurt, the DAX gained 1.49%, while the MDAX index gained 0.67%, and the TecDAX index gained 1.68%. Advancing stocks outnumbered falling ones by 508 to 199 and 74 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 9.67% to 21.76. While equity markets opened for the week on negative note owing to headlines which indicated escalating tensions between China & U.S. yesterday’s European market hours saw major global equities do a roundabout price action on news which said Officials from Washington and Beijing entered trade talks once again via a phone call to discuss future proceedings of trade negotiations.
Macro Data Outcome Helped German Equities Make Solid Bullish Price Action
The positive investor sentiment and price action in market was further boosted by news that stated US President Donald Trump was ready to intervene in Huawei executive arrest issue if it would result in favorable trade deal. Asian stock markets rallied on Wednesday following US President Trump’s optimistic comments related to trade deal between China & U.S.A. All major indices in key Asian markets traded positive as investor sentiment was boosted further on news that China was considering cutting import tariffs on American-made cars to 15 percent from the current 40 percent. But investors continue to remain cautious as reports suggested that U.S. would release evidence this week detailing Chinese hacking and economic espionage which could renew trade war related investor woes.
European markets are expected to continue positive price action during today’s market hours on positive cues from international market and favorable economic proceedings in local markets. While Italian budget woes continue to remain a thorny issue for bulls in Europe, Italian daily newspaper La Repubblica stated that finance minister Giovanni Tria was trying to convince Rome to lower its target for the country’s budget deficit in 2019 to 2.0% as a proportion of GDP, versus the 2.4% goal initially tabled, while Brussels was reportedly ready to accept a deficit goal of 1.95% of GDP hinting that both sides are working towards a compromise. German macro data released yesterday also provided positive influence for equity markets. Dax futures trading in international market was up by 0.90% ahead of Frankfurt market opening which suggests that DAX will resume yesterday’s positive price action and work towards recovering losses from last week’s declines.
This article was originally posted on FX Empire
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