Yahoo Finance DAX Index Daily Price Forecast – DAX Likely To Trade Subdued on ECB Draghi’s Dovish Comments
European equity markets closed positive yesterday supported by hawkish cues from Asian markets. This was further fundamentally supported by Trade balance data for Euro Area which was released yesterday which hinted at surplus as reading was at 15.1 billion, highest in last three months. Increased risk appetite in market has so far favored Dax as the index has enjoyed a relatively bullish month compared to December despite still recovering from previous month’s loss. German stock exchange saw majority of its stocks close positive for the day as 390 of 778 stocks closed in green while 84 closed in neutral level.
Investor Sentiment is Dovish in European Markets
Stocks from construction and software sectors saw the most gains yesterday as visible from performance of respective sectorial indices in Frankfurt stock exchange. All three major indices in said exchange were in green at end of trading session with DAX, MDAX & DAX up by 0.33%, 0.29% & 0.97% on the day respectively. Asian session saw all major indices from key Asian markets take mixed stance today following historic turnout in vote against government in Brexit deal approval yesterday. However market performance from China, Singapore and Hong Kong exhibited bullish bias in their equity market performance while Wall Street last night closed positive.
European markets are expected to suffer slight dovish influence despite hawkish cues from allied market as EURO is trading in red in broad market following ECB President Mario Draghi’s speech last night where he warned lawmakers that economy in Europe is slowing down at worse than expected levels which combined with political issues currently ongoing in Europe and no-deal brexit scenario following rejection of Brexit deal yesterday, weighing down investor sentiment significantly. DAX Futures trading in international market ahead of Frankfurt market opening was up by 0.20% which suggests that while DAX may trade positive during today’s market hours, chance for sharp upside move and strong gains are highly limited.
This article was originally posted on FX Empire
