Yahoo Finance DAX Index Price Forecast -DAX to Trade Range Bound on Mixed Global Cues Amid Increased Risk Appetite
Germany equities were mixed at the close on Wednesday, as gains in the Basic Resources, Chemicals and Construction sectors propelled shares higher while losses in the Utilities, Media and Financial Services sectors led shares lower. At the close in Frankfurt, the DAX added 0.50%, while the MDAX index lost 0.01%, and the TecDAX index lost 1.40%.pair are at 1.3133, 1.3098, 1.3075 and 1.3158, 1.3215, 1.3281 respectively. Advancing stocks outnumbered falling ones by 364 to 334 and 77 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 4.36% to 14.29 a new 1-month low. European markets yesterday closed on positive note as equity markets were highly active owing to subdued demand for US Greenback and safe haven instruments.
Bearish Move Likely but Subdued Demand For Safe Haven Suggests Increased Activity in Risky Segment of Equity Markets
US markets had mixed closing for the day with DOW 30 & S&P 500 closing on positive note while NASDAQ closed on negative note. Asian stocks followed global cues and were in a mixed stance on early Thursday, as investors took a less bearish view on the impact of the U.S.-China trade war on markets, a sharp contrast to dim expectations economists had on U.S. growth amid the worsening tensions. The rally in global stocks has been accompanied by falls in U.S. bonds and the Japanese yen. The yield on benchmark 10-year Treasury notes US10YT=RR , which on Wednesday touched its highest level since May 18, was at 3.0626% on early markets hours today compared with its U.S. close of 3.083%.
As trading session progressed Chinese and Singapore market turned bearish but Singapore’s FTSE is trading with neutral bias as downside move was limited to 0.02% while Japanese market closed for the day on positive note. Risk appetite remains high and activity in safe haven instruments remains very low during Asian market hours. Riskier instruments are seeing high level of activity across global markets in Asian market hours. However subdued price action for EURO in global market and DAX futures which were trading dovish in international market ahead of German market hours suggest possibility for downward price action in today’s trading session. DAX is forecast to open gap down and trade range bound across the day with bearish bias but downside move is likely to be capped soon as risk appetite remains high in market.
This article was originally posted on FX Empire
