DAX Index Daily Price Forecast – Healthy Risk Appetite To Underpin Market Bulls And Influence Upward Move in DAX

European markets yesterday saw major indices and equities trade positive across the day. Investor sentiment in the European market was positive yesterday supported by optimism surrounding progress in Sino-U.S. trade talks and hopes for positive progress in Brexit. News of PM May aiming to make changes to the UK’s withdrawal agreement with EU during their meeting in Brussels yesterday hit the market and this improved risk appetite in European markets considerably. Further positive cues from Asian markets and US Wall Street also improved investor risk appetite in major European markets. Positive German PPI also underpinned positive price activity in Frankfurt stock exchange yesterday.

ECB Meeting Minutes Eyes For Directional Cues

German equity market yesterday saw most major indices and stocks trade positive across the day, but closed on mixed note at end of trading session. Out of total 778 stocks trading in the exchange, 407 stocks closed in green while 82 closed unchanged at end of trading session. As per data on the performance of sectoral indices from Frankfurt stock exchange, 14 of 18 sectoral indices closed positive for the day and stocks from Automobile, basic resource, transport and logistics sector seeing top gains with more than 1.50% increase in value. While DAX and MDAX saw positive price action with DAX hitting new monthly highs, TECDAX index closed on a dovish note. At end of the day, the three major indices DAX, MDAX and TECDAX closed with 0.82%, 0.10% & -0.68% change in value.

Asian shares continue to trade positive as Fed member Robert Kaplan reiterated that Fed is going to maintain a patient approach to rate hike plans for 2019 despite Fed meeting minutes providing mixed signals. Dovish comments and stance from major global central banks are providing significant bullish influence to global equities. Optimism surrounding the Sino-U.S. trade war also continues to underpin positive price action. DAX futures trading in the international market were up by 0.50% ahead of the Frankfurt market opening. This suggests that DAX index is likely to open positive and trade in green across the day but price action is likely to be range-bound ahead of ECB meeting minutes update which traders are on the lookout for directional cues.

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This article was originally posted on FX Empire

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