Yahoo Finance DAX Index Falls Lower on Bad Risk Sentiment
The DAX index fell hard during the course of the day yesterday as the index suffered from the loss of risk sentiment all across the globe and it basically followed what the other global indices were doing. The cancellation of the summit between the US and North Korea seems to have had a deep impact on the markets.
DAX Lower
The last few week had seen that some of the tension in the Korean region had eased due to the talks between North and South Korea and the traders and the people would loved peace the world over were hopeful of a solution being reached to the problem and that North Korea would be back in the international fold. But over the last couple of weeks there has been some escalating tension in the region once again, especially due to the statements flying fast and furious from the US and North Korea.
So what we saw as the final straw of all these developments over the last few weeks is the fact that the summit that was scheduled for June has been cancelled and this has led to a risk off sentiment in the markets over the last 24 hours which had dragged the markets lower. Now we have seen the index pushing below the 12800 region as a result but those who continue to be bullish on the index are likely to view this as an opportunity to go long on the market at the broken resistance turned support region.
Looking ahead to the rest of the day, we are likely to see some bottom fishing from the traders and the investors who still believe that the prices and the stock indices are only going to move higher in the short and medium term.
This article was originally posted on FX Empire