|Day's range||10,733.75 - 10,903.39|
|52-week range||10,585.77 - 13,596.89|
DAX is expected to continue yesterday’s bearish price action influenced by cues from overseas markets.
Today, in the EU markets’ focus is the ECB meeting, which often causes strong volatility. Mario Draghi is expected to confirm that the Central Bank will finally stop buying assets by the end of this year.
Optimism surrounding Sino-U.S. trade talks and positive headlines related to trade activities from China boost investors risk appetite.
Positive proceedings of geo-political events and better than expected macro data helped boost German equities significantly.
FT subscribers can click here to receive Market Forces every day by email. Italy and “Lo Spread” has competition. “Le spread” is heating up as France’s U-turn on fuel taxes and announcement by president Emmanuel Macron of new spending measures comes when the country’s budget deficit was already forecast at 2.8 per cent of GDP for 2019.
Dax index yesterday closed near 52-week low on risk averse price action and is expected to continue trading in red during today’s market hours.
DAX is expected to open in red and trade with bearish bias owing to decreased risk appetite but downside is likely to be limited as common currency trades positive in broad market providing some measure of fundamental support to German equities.
Oil prices continued to fall on Friday, as the Organization of the Petroleum Exporting Countries (OPEC) struggled to come up with an agreement on cutting oil production. West Texas Crude oil futures for January slumped 0.43% to $51.27 a barrel, while Brent crude futures, the benchmark for oil prices outside the U.S., rallied 0.17% to $60.16. The Thursday session of the OPEC meeting in Vienna ended without any decision on cutting oil supply, as Iran seeks an exemption from any cuts due to U.S. sanctions which have already weighed on its exports.
Dax likely to trade range bound with positive bias as Asian equities saw relatively positive price action amid cautious investor stance ahead of US NFP.
Another gap in the DAX, this time a bearish one. We start Thursday on the important mid-term horizontal support, which may help to lift the price higher. Why? Because that would be the gap closing movement and we all know that gaps love to be closed, especially on the DAX. The sentiment in the long-term remains negative but in the short-term, we can see this light in the tunnel.
DAX to trade with bearish bias for third consecutive trading session but downside could be limited owing to solid fundamental support.
Gains followed China’s announcement that it will swiftly follow through on trade pledges made at the weekend meeting of Presidents Donald Trump and Xi Jinping. Given the market attention on inversions of parts of the U.S. yield curve, gains when Wall Street reopens Thursday may be limited.
Yesterday, the price broke the horizontal resistance created by the last week’s tops along with the upper line of the symmetric triangle. As we can see now, that is a false breakout pattern, which brings us a proper sell signal. DAX also has a false breakout pattern.
DAX index is expected to move with bearish bias today owing to bearish investor sentiment on worries of global economic slowdown, Brexit proceedings and cues from wall street rout which has triggered a bearish price action in Asian equities.
FT subscribers can click here to receive Market Forces every day by email. Given the inferior performance of global stocks versus the S&P 500 so far this year, one can argue that Wall Street is perhaps recognising that there are limits to US exceptionalism. Beyond the US, it has been looking pretty gloomy for many global equity markets since the summer.
Investors have taken cautious stance as US Fed talks about global risks but price action in Asian equities show positive influence in market remains albeit cautious investor sentiment.
As political woes in european market and news of possible tariff of European auto markets add bearish investor sentiment to European markets investors focus turns to Italian Budget for which EU’s deadline for making changes ends today.
Global trade tensions and potential debt contagion from Europe’s weaker economic regions has added to the uncertainty and prevented potentially bullish investors from buying on dips.
Weak China data and U.S. Fed rate hike expectations weigh on global equity market momentum.
Investing.com - Stocks in New York started lower Friday on inflation concerns and the continued decline in oil prices, which hit energy shares.