Yahoo Finance DAX Index Daily Price Forecast – DAX To Trade With Bearish Bias But Downside Remains Cushioned
Frankfurt stock exchange saw positive price action in majority of its shares yesterday supported by increased risk appetite in market and strong fundamental support. Optimism surrounding positive progress in Sino-U.S. trade talks boosted risk appetite in global equity markets. Cues from international market and positive investor sentiment in German markets helped the pair gain positive start for the day. The price action was further supported by better than expected readings in German and Euro area macro data which helped equities close positive for the day. Tech and Media shares were the highest gainers in Frankfurt stock exchange yesterday. All three major German indices closed in green with DAX, MDAX & TECDAX seeing 0.83%, 1.29% & 1.13% increase in value during yesterday’s European market hours.
Profit Booking Activity Caused Asian Indices To Turn Red At EOD
As expected Dax index scaled 10900 mark again yesterday and hit an intra-day high of 10961.92 despite closing below 10900 mark. Asian equities traded positive today on cues from US markets which saw various Fed members express dovish sentiment during yesterday’s speech which was followed by release of latest Fed meeting minutes which revealed Fed member’s stance to take a patient approach on 2019’s rate hike plans much in line with investors’ expectations. This update boosted risk appetite in market influencing positive price action in Wall Street and major Asian equities. Investors now continue to await update from Sino-U.S trade talks as update could help get a better idea on short to medium term outlook of broad market price action. While fundamental continue to support bullish price action in equity markets, profit booking activity following recent gains caused major Asian indices to lose nearly 1% as Chinese and Japanese markets came to close.
Cues from Asian markets, investor’s cautious approach to market ahead of ECB meeting minutes update and profit booking activity are expected to European equities into slight bearish price action during London market hours today. Germany’s BDI industry association demands to EU for tougher economic approach towards China owing to Beijing’s reluctance to open up access is also expected to weigh on German equities. Dax futures trading in international market also saw slight downward price action ahead of Frankfurt market opening which along with cues from international market suggests DAX could trade range bound with bearish bias during today’s market hours.While profit booking activity and cautious investor sentiment could drive price on bear’s path downside is expected to remain cushioned near monthly lows at $10690 price handle on strong fundamental support and increased risk appetite in broad market.
This article was originally posted on FX Empire
