Germany equities were higher at the close on Wednesday, as gains in the Basic Resources, Pharmaceuticals & Healthcare and Industrials sectors propelled shares higher. At the close in Frankfurt, the DAX added 1.38%, while the MDAX index gained 1.81%, and the TecDAX index climbed 1.63%. Advancing stocks outnumbered falling ones by 545 to 172 and 56 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 4.73% to 20.73. European markets gained on Wednesday influenced by positive sentiment surrounding the talks between the U.S. and China talks and gains in Oil market which boosted Energy sector shares.
Investors Cautious Ahead of ECB Rate Decision Update
Asian equity markets surged on Thursday on signs of easing Sino-U.S. trade tensions and expectations that China will step up efforts soon to support its cooling economy. Markets are slowly growing less pessimistic about the chances of a Sino-U.S. trade deal after a slew of news this week pointed to easing tensions between the two powers. News of Huawei CFO being released on bail and UK Prime Minister Theresa May winning no-confidence vote against her also boosted positive sentiment and boosted risk appetite in market. Chinese major indices have been trading with over 1% increase in value while, Japan’s NIKKEI 225 is up by 0.95% & Singapore’s FTSE STI is up by 0.45% on the day. Investors are now waiting for forward guidance from ECB & US Fed which will set the course for year end price action in forex and equity markets.
While positive sentiment is high and European equities are expected to trade in green, investors are a little cautious ahead of ECB’s rate decision update today where Draghi is expected to hint at atleast one rate hike in 2019. However dovish comment from Draghi will bring back bearish price action from recent past as political climate is EU is still rocky with investors speculating if France President Emmanuel Macron’s promise to cut taxes and lift wages for workers is potentially in breach of the European Union’s fiscal rules. DAX futures trading in international market is up by 0.44% on the day ahead of German market hours hinting at positive market opening in Frankfurt stock exchange and bullish price action in DAX index during today’s market hours.
This article was originally posted on FX Empire
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