DAX Index Daily Price Forecast – Positive Cues To Induce Bullish Action in DAX

European markets yesterday saw major indices and equities trade in red as concerns of a trade war between US & EU escalated in the market. While the Sino-U.S. trade war seems to be approaching an end, the trade war between the US & EU is yet to hit the mainstream market. Trade talks continue to occur between two economies but a real trade war is yet to occur between the two parties. However reluctance of Europe to open its market to a wider range of American products including agriculture sector. This has caused America to threaten the European market with the possibility of imposing a tariff on European auto products in case Europe doesn’t budge from its stubborn stance. Further, a strong decline in bearish stocks also weighed down European equities.

US Tariff Threat on European Auto Market Hinders Market Bulls

However, the German equity market saw relatively neutral activity and closed with slight gains on cues from the international market.  While the benchmark index which measures the activity of equities in Frankfurt stock exchange closed on a positive note, the reality is that the German market saw a mixed outcome during yesterday’s trading session. Out of total 778 stocks trading in the exchange, 342 stocks closed in green while 88 closed unchanged at end of trading session. As per data on the performance of sectoral indices from Frankfurt stock exchange, 9 of 18 sectoral indices closed positive for the day and stocks from construction, transport and logistics sectors seeing most gains While stocks from Banks, media and Chemical sector saw a high loss.

Two of top three most-watched German indices saw an upside move at end of the trading session and DAX, MDAX & TECDAX indices closed for the day with 0.09%, -0.36% & 0.44% change in value respectively. The dovish stance from major central banks across the globe as evident from recent updates such as ECB, RBA, and expectations of a dovish signal from Fed meeting meetings scheduled to release later today along with optimism surrounding Sino-U.S. trade talks helped Asian equities trade positive. Positive cues from US Wall Street also added further positive influence to market bulls supporting upside move in major Asian indices and equities. DAX futures trading in the international market was up by 0.88% ahead of Frankfurt market opening, this combined with Brexit optimism and positive cues from US Wall Street and Asian equities are expected to influence positive price action in European equity markets and Frankfurt stock exchange today. Positive price action in Frankfurt exchange will influence the positive movement of DAX index during European market hours.

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This article was originally posted on FX Empire

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