Yahoo Finance DAX Index Daily Price Forecast – DAX to Trade Positive Supported by Hawkish Investor Sentiment in Local Market
Germany equities were mixed at the close on Wednesday, as gains in the Food & Beverages, Financial Services and Retail sectors propelled shares higher while losses in the Pharmaceuticals & Healthcare, Media and Chemicals sectors led shares lower. At the close in Frankfurt, the DAX fell 0.52%, while the MDAX index fell 0.12%, and the TecDAX index gained 0.32%. Declining stocks outnumbered rising ones by 363 to 344 and 70 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 9.73% to 17.16. European equities experienced high level of bearish experience yesterday as US Greenback dominated the market with investors focus turned on FOMC update.
Asian Markets Took Bearish Hit on Sino-US Trade War Escalation
China’s benchmark stock index skidded to four-year lows and dragged Asian equities down on Thursday, as renewed fears of a broadening economic impact from an escalating Sino-U.S. trade conflict sapped confidence. The dollar, however, was in fine fettle, hitting a one-week high after the minutes of the Federal Reserve’s latest meeting backed market expectations for borrowing costs to rise further. While the Fed’s policy outlook suggested the U.S. economy was humming along nicely, the spectre of rising dollar yields, which along with trade tensions were at the center of last week’s global equities rout, dented appetite for risk. Hawkish FOMC update has resulted in spike in bond yields and increase in value of US Greenback in broad market which is expected to further dent the momentum of equity market today.
The euro has lost just under 3 percent of its value versus the dollar over the last three weeks and investors now focus on updates relating to Italian budget crisis and Brexit proceedings from EU summit which is on its second day and so far investors remain on cautious note as no major market impacting update has hit headlines yet. DAX futures trading in international market was trading positive with nearly 0.30% ahead of Frankfurt market opening indicating positive market sentiment despite ongoing geo-political events and rise in US Greenback’s value in broad market. DAX opened positive for the day and has maintained steady upward move and is expected to continue range bound movement today with hawkish incline in price action.
This article was originally posted on FX Empire
