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DAX Index Daily Price Forecast – DAX Likely To Trade Range Bound With Bullish Bias

Colin First

Germany equities were higher at the close on Wednesday, as gains in the Technology, Industrials and Construction sectors propelled shares higher. At the close in Frankfurt, the DAX rose 1.53%, while the MDAX index climbed 2.22%, and the TecDAX index added 2.64%. Advancing stocks outnumbered falling ones by 559 to 127 and 25 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 0.04% to 22.47. Key equity markets across Europe closed positive yesterday supported by increased risk appetite surrounding equity market, positive cues from Wall Street and Asian equity markets and Positive Eurozone CPI data. The risk appetite remains highly active both in equity markets and forex market today.

Equity Markets Take on Positive Tone Over Cues from Wall Street

European equity markets are further supported by subdued demand for US greenback and safe haven instruments and rebound in Euro in broad market supported by optimism surrounding latest brexit update. US equity markets saw highly positive performance last night owing to hawkish ADP employment data which signaled that the economy continues to grow at a relatively robust pace reinforcing expectations for continued rate hike by US Fed. Asian equity markets made the best of opportunity post a highly disappointing month as investors took cues from Wall Street for second consecutive day and key Asian markets traded positive across Asian market hours indicating increased risk appetite and positive investor sentiment in market, resulting in positive start of equity market for the month of November.

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Investor sentiment remains hawkish across globe today and European markets are expected to open positive and trade in green across the day supported by positive cues from international markets.  However DAX Futures trading in international market was trading in red indicating possibility for bearish opening and possible range bound price action owing to lack of fundamental support despite positive cues from overseas equity markets and political uncertainties. DAX futures were down by 0.37% in Asian market hours. Investors now look forward key macro data updates and headlines relating to geo-political events from international markets for directional cues.

This article was originally posted on FX Empire

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