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DAX Index Daily Price Forecast – DAX To Open Positive But DAX Bulls Are Data Dependent

Colin First

Germany equities were lower at the close on Friday, as losses in the Consumer & Cyclical, Technology and Industrials sectors propelled shares lower. At the close in Frankfurt, the DAX fell 0.54%, while the MDAX index declined 0.89%, and the TecDAX index lost 1.08%. Declining stocks outnumbered rising ones by 463 to 245 and 72 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 1.00% to 20.29. Dax index on Friday continued its decline for second consecutive session influenced by weak macro economic data. Germany continues to produce weak economic readings, weighing on investor confidence. The manufacturing sector continues to struggle, as Manufacturing PMI for November was the latest in a string of soft manufacturing releases.

Cues from Major Global Equity Market Hint at Positive Price Action Today

The global trade war has resulted in higher tariffs on German products, putting a damper on German exports and the manufacturing sector. As the largest economy in the Eurozone, a slowdown in Germany is bad news for the entire Eurozone, which has struggled in the second half of 2018.  Overall weak macro data influenced bearish investor sentiment greatly impacting performance of equities on last trading session of the week. Asian share markets began the week on a cautious note after soft economic data from China and Europe added to evidence of cooling global growth and reinforced anxiety over the broadening impact of international trade frictions. Investors are now exercising high level of caution over their investment and trading activities as they await Fed rate hike forward guidance for 2019 which is having its bearish outlook increase with each passing data as macro data continues to disappoint in US.


However equity markets in Asia and US futures display positive price action ahead of European market hours hinting at possibility of positive price action in Frankfurt stock market. German futures trading in international market ahead of Frankfurt market opening is up by 0.72% on the day also supportive of positive market opening in Frankfurt stock exchange today. DAX is likely to open positive but maintain subdued price action with positive bias across the day as sharp upside move is likely to be limited ahead of US FOMC update. The index will see price trade flat near Thursday’s level but positive bias and investors sentiment surrounding equity markets could take a turn for worse of Eurozone CPI data scheduled to release later today has dovish outcome.



This article was originally posted on FX Empire