European markets on Friday closed on positive note supported by risk appetite in the equity market and better than expected EURO CPI data. Investor sentiment turned positive as all major geopolitical events that could cause serious changes to market were done with and the week ahead was filled with high impact macro data as market returned back to normal. German equity market opened positive on Friday but price action saw sharp loss owing to worse than expected German macro data. However, DAX index managed to close with a slight positive bias on last trading session of the week. Overall market performance in Frankfurt exchange was also positively supported by cues from the international market.
Asian Equities Trade Steady Amid Holiday Thin Market
Out of total 778 stocks trading in Frankfurt stock exchange, 391 stocks closed in green while 70 closed unchanged at end of the day. As per data of sectoral indices performance from the exchange, stocks from F&B, Construction and Basic resource sectors saw a high level of gains and helped market close positive while stocks from software and financial services sectors saw sharp declines pulling the market down from intra-day highs. All three major indices DAX, MDAX & TECDAX closed in green with 0.07%, 0.30% & 2.75% increase in value as trading session came to close for the day. Price action in the Asian equity market was relatively subdued as China & Singapore markets are closed today.
Other major stocks and indices in Asia traded in green since trading session opened for the week as risk appetite is high ahead of macro data filled week. Positive investor sentiment was further underpinned by positive cues from US Wall Street which closed in Green last Friday backed up upbeat US NFP data and ISM manufacturing data. The German equity market is highly influenced by price action in Wall Street and likely to open positive on cues from Asian and U.S. equity markets. Further DAX index trading in the international market was up by 0.30% ahead of German market opening. This suggests that the DAX index is expected to open positive and trade with steady bullish bias across the day. Given lack of major macro data updates in EURO area, Frankfurt exchange is likely to see bullish price action across the day on risk appetite in the broad market.
This article was originally posted on FX Empire
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