Yahoo Finance DAX Index Daily Price Forecast – DAX Moves Positive Supported by Positive Cues from Overseas Markets
Germany equities were lower at the close on Friday, as losses in the Basic Resources, Technology and Industrials sectors propelled shares lower. At the close in Frankfurt, the DAX declined 0.31%, while the MDAX index declined 0.84%, and the TecDAX index declined 0.34%. Declining stocks outnumbered rising ones by 447 to 254 and 78 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 7.05% to 18.53. German Equity market is expected to see a bout of volatility this week as EURO – the currency used by Frankfurt stock exchange is expected to see high level of price swings against major global counter parts owing to multiple factors such as Italian budget crisis, spread difference in 10 year bond yield for govt bonds of Italy and Germany and Geo-political events that sets the momentum across all key global equity markets.
Italy-German Bond Yield Spread Difference Could Affect DAX Movement
Asian share markets pared early losses on Monday as Chinese stocks swung higher for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit. Equity markets are expected to trade positive across the week over cues from US wall street as this week is the peak period of the U.S. earnings season and companies such as Amazon, Alphabet and Microsoft are expected to release their numbers which are expected to be highly positive which could serve as continues bullish trigger across the week. However, headwinds are building at the margin in the form of U.S. dollar strength, supply chain disruptions owing to all the trade uncertainty, and rising costs. Even the mere hint of a turn in profit fundamentals would have severe ramifications.
European markets closed on mixed note last Friday as Moody upgraded Italy’s credit rating which helped the index made some bullish headway on upbeat common currency in broad market. DAX futures in international market traded positive ahead of Frankfurt market opening, up by 1.24% in Asian market hours. This provided bullish support to German equities and suggests that DAX index could continue to move positive across Monday’s trading hours supported by positive cues from overseas markets. DAX opened positive today and is currently trading in green up by 0.88% on the day and if the yield spread difference goes below 300 points during European market hours DAX could close for the day with over 1.5% increase in value.
This article was originally posted on FX Empire
