Yahoo Finance DAX Daily Price Forecast – Headlines Driven Momentum Expected To Dictate DAX Price Action
Majority of European equity markets closed in red yesterday despite most markets opening on a positive note. Investor sentiment in the global market was divided as trade talks between China & U.S. began yesterday. Most retail traders and some investors decided to book profits on recent price rally and held back from placing any major bets as a negative outcome from talk talks could influence a sharp bearish slide in the market. Further UK parliament session saw an unexpected turn of events as Pro-Brexiteers who were expected to support PM May failed to support her plans on future plan of actions. This resulted in investor sentiment taking a dovish tone in European markets and further profit booking activities resulting in most major indices and stocks closing in red for the day.
Wall Street Cues Put Bearish Pressure on Asian Market
German equity markets yesterday opened on a positive note, but bulls failed to hold control of the market for long resulting in most major indices and shares seeing a sharp decline across the day. Out of total 778 stocks trading in the exchange, 375 stocks closed in red while 93 closed unchanged at end of trading session. As per data on the performance of sectoral indices from Frankfurt stock exchange, 12 of 18 sectoral indices closed in red for the day with stocks from Automobile, Pharma & healthcare, Banks and Transport & logistics sectors were the top losers of the day with all three indices seeing more than 1% decrease in value. Further, all three major German indices also saw a sharp upside move and DAX, MDAX & TECDAX indices closed for the day with 0.69%, 0.35% & 0.60% decrease in value respectively.
Disappointing macro data and cautious investor sentiment ahead of Sino-U.S. trade talks led to mixed activity in US Wall Street with two of three major US indices – DOW 30 & S&P 500 closing in red for the day. Asian markets took dovish cues from US Wall Street and traded in red with most major indices and stocks closed in red for the day down by more than 1% on the day. DAX futures trading in the international market were down by nearly 0.65% on the day ahead of the Frankfurt market opening. Dovish Cues from international markets are likely to inspire dovish price action, but the outcome of Sino-U.S. trade talks and headlines driven momentum could help the DAX index and major shares recover later in the day.
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This article was originally posted on FX Empire