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DAX Index Daily Price Forecast – Dax To Continue Bullish Price Action

Colin First

Germany equities were higher at the close on Wednesday, as gains in the Food & Beverages, Pharmaceuticals & Healthcare and Utilities sectors propelled shares higher. At the close in Frankfurt, the DAX rose 0.83%, while the MDAX index added 0.90%, and the TecDAX index gained 1.16%. Advancing stocks outnumbered falling ones by 496 to 200 and 84 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 2.09% to 19.21. European markets closed positive yesterday supported by bullish EURO in broad market and high level of risk appetite among investors following announcement of US mid-term election results.

Hawkish Cues From International Markets & Upbeat EURO Are Expected To Inspire Positive Price Action in DAX

Asian stocks rose to a one-month peak on Thursday as investors, relieved to have moved past the U.S. midterm elections without any major political surprises, drove a Wall Street rally, while the dollar bounced and pulled away from 2-1/2-week lows. Wall Street’s main indexes rose more than 2 percent on Wednesday, led by the technology and healthcare sectors as the market breathed a sigh of relief after the U.S. midterm elections, in which Democrats wrested control of the House of Representatives and Republicans retained the Senate. Moving forward, as investors have already priced in a split decision outcome in US mid term elections, the outlook is expected to be positive for risky assets.

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In short term, Investors focus remains on FOMC update scheduled to release later today and while investors don’t expect any high impact update or rate hike during this meeting as Fed is expected to hike interest rates during its December meet, the Fed meet today is expected to provide forward guidance for 2019. DAX futures trading in international market is trading positive ahead of European market hours up by 0.43% on the day. DAX index is expected to open positive supported by hawkish cues from Wall Street and key Asian markets. German equities are also expected to see bullish support from positive EURO in broad market during today’s market hours which should help DAX maintain upward movement across the day.

This article was originally posted on FX Empire

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