Germany equities were mixed at the close on Tuesday, as gains in the Media, Construction and Telecoms sectors propelled shares higher while losses in the Food & Beverages, Transportation & Logistics and Consumer & Cyclical sectors led shares lower. At the close in Frankfurt, the DAX declined 0.37%, while the MDAX index fell 0.11%, and the TecDAX index climbed 0.67%. Declining stocks outnumbered rising ones by 362 to 305 and 29 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 5.51% to 22.48. European markets had mixed closing yesterday with major indices such as EURO STOXX 50 and CAC 40 closing bearish for the day. However positive German CPI data helped German equity markets see mixed outcome yesterday.
Equity Markets On Positive Tone Over Optimism Surrounding Sino-U.S. Trade Deal
Asian stocks pulled away from 20-month lows on Wednesday, thanks to a rebound on Wall Street, although investors remained cautious after an October month that saw sharp downturns across global equity markets. A confluence of factors from Sino-U.S. trade tensions to worries about U.S. corporate earnings to the end of easy money in development economies have spurred volatility in financial markets in the past few weeks. U.S. President Donald Trump said during an interview with Fox News late on Monday that he thought there could be an agreement with China on trade. But he also said he had billions of dollars worth of new tariffs ready to be imposed if a deal was not possible. While news of tariffs influenced a bearish bout in early Tuesday’s market hours, news that a deal could still be possible slowly changed investor sentiment resulting in major equity markets such as US wall street, China & Hong Kong and Indian stock markets trading in green in Asian market hours indicating renewed risk appetite in Equity markets.
Political uncertainty in Germany, following chancellor Angela Merkel’s decision to step down in 2021, continues to pressure the single currency. Moreover, the stand-off between Rome and Brussels over Italy’s free spending budget, which is in breach of the European Union’s fiscal rules, also weighed on the euro. However investor sentiment surrounding equity markets look positive in Asian market hours as investors took cues from Wall Street and DAX futures trading in international market ahead of Frankfurt market opening was up by more than 1.25% indicating possibility for positive opening and hawkish performance of DAX index during today’s European market hours. There is high possibility that DAX index could erase yesterday’s losses and see some gains during today’ market hours.
This article was originally posted on FX Empire
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