Yahoo Finance DAX Index Daily Price Forecast – DAX To Trade With Dovish Bias On Coeure’s Comments
European markets on Friday saw all its major equities and indices close in green supported by optimism surrounding Sino-U.S. trade talk progress. News hit the market that trade talks showed progress and further talks will happen in Washington the week ahead. While no specifics were provided, comments from Chinese Premier and tweets from US representatives made it clear that positive progress was made and there were still high hopes for a trade deal between two nations. Further given the fact that US President Donald Trump was ready to extend the deadline by another 60-days to make sure trade deal is secured which would mean the end of a prolonged geopolitical event that put market dragged global market into bears path. This exited market bulls leading to positive price action in all major European and US markets.
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German equity market was one of the major global equities that saw positive gains last Friday. Frankfurt stock exchange saw all its major indices and the majority of top stocks trade positive and close in the green. Supported by news driven momentum, the Frankfurt stock exchange saw positive price action across Friday’s trading session. Out of total 778 stocks trading in the exchange, 484 stocks closed in green while 81 closed unchanged at end of trading session. As per data on the performance of sectoral indices from Frankfurt stock exchange, 17 of 18 sectoral indices closed positive for the day and stocks from Bank, Media and Transport and logistics sectors were the top gainers of the day with three indices seeing 4.61%, 3.69% & 2.92% increase in value respectively. Further, all three major German indices also saw a sharp upside move and DAX, MDAX & TECDAX indices closed for the day with 0.37%, 0.61% & 0.43% increase in value respectively.
Asian equity market took positive cues from US Wall Street and on optimism surrounding Sino-U.S. trade talks and traded positive across Pacific-Asian market hours. DAX futures saw positive price action early in the day and were up by 0.17% in early Asian market hours but saw a slight decline ahead of European market opening. The bearish decline was the result of cautious investor sentiment from European pre-open market as ECB board member Benoit Coeure last Friday mentioned plans for initiating targeted long term refinancing operation by ECB which is viewed as dovish sentiment by investors. DAX is expected to see subdued opening and trade with dovish bias given the high level of dovish influence following Coeure’s speech last Friday. However, sharp downside move is likely to be prevented by positive cues from international markets.
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This article was originally posted on FX Empire
