Australia Markets closed

DAX Index Daily Price Forecast – German Equities Likely to Move Upwards Supported by Hawkish EURO

Colin First

Germany equities were lower at the close on Wednesday, as losses in the Construction, Chemicals and Insurance sectors propelled shares lower. At the close in Frankfurt, the DAX declined 0.52%, while the MDAX index declined 0.26%, and the TecDAX index fell 0.62%. Declining stocks outnumbered rising ones by 458 to 239 and 80 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 5.44% to 17.90. Key equity markets across Europe and US closed in red yesterday owing to risk off investor sentiment induced by geo-political events.  Brexit woes added additional pressure to European markets yesterday as the headlines were constantly fluctuating across the day.

Optimism Surrounding Sino-U.S. Trade War Proceedings Provides Bullish Boost To Equity Market

Asian stocks rose on Thursday, taking heart from a bounce in Chinese shares on news that China has delivered a written response to U.S. trade demands, while oil prices resumed their retreat on fears of oversupply. U.S. government sources told Reuters on Wednesday that China had sent a response to U.S. demands for trade reform but gave no further details, raising hopes the two sides could resume negotiations to end their trade war. Traders have cautiously welcomed news in recent days that Washington and Beijing have resumed informal discussions ahead of a meeting between presidents Donald Trump and Xi Jinping late this month.  Few market watchers expect a trade agreement at that meeting but hopes are growing that they may agree on de-escalation while the two sides pursue more detailed talks.


For now investors across the globe maintain a cautious stance as headlines surrounding various geo-political events such as U.S. political gridlock, China’s slowing growth, earnings peak, Italian jitters, and Brexit uncertainty continue to inspire risk off sentiment in medium term both in current as well as recent past trading sessions and looks likely to continue inspiring risk off sentiment in near future. DAX futures trading in international market was positive ahead of Frankfurt market opening up by 0.64% on the day taking cues from positive tone surrounding Asian markets. DAX index is likely to trade positive over positive cues from Asian markets and hawkish EURO in broad market which is likely to provide bullish boost to German equities.

This article was originally posted on FX Empire