DAX Index Daily Price Forecast – DAX To Trade Dovish On Subdued Risk Appetite
Equity markets across all major European economies closed on a positive note yesterday. All major indices across European indices saw sharp gains at end of yesterday’s trading session. Broad-based risk appetite and positive Euro area PMI’s underpinned market bulls helping establish solid upside price action. While disappointing retail sales data invoked investor woes over an economic slowdown, it had very little impact on equity market performance. However, the single currency did lose some ground in forex markets over concerns of Euro area economic slowdown. Out of total 778 stocks trading in Frankfurt stock exchange, 500 stocks closed in green while 75 stocks closed unchanged at end of the market session.
Renewed Sino-U.S. Trade War Concerns Hurt Investor Sentiment
All three major indices from Frankfurt exchange, closed in green yesterday. While German macro data saw mixed outcome it had little impact on the performance of German equities. The three indices DAX, MDAX & TECDAX closed with 1.71%, 1.31%, and 2.12% increase in value at end of Frankfurt trading session. DAX index hit a new one-month high as bulls received strong support from positive risk appetite in the market. As per data on sectoral indices performance from Frankfurt stock exchange, stocks from Retail, Software and Consumer & Cyclical sectors saw a high level of gains yesterday and helped DAX on its positive price action. Asian shares opened positive today but soon turned dovish on renewed Sino-U.S. trade war-related concerns.
U.S. President Donald Trump during his state of the union speech in Pacific-Asia market hours blamed China for stealing intellectual property and taking away jobs and profit from America. This renewed market woes as trade deal has been delayed despite progress on key issues and is at make or break juncture now. This also caused investor sentiment in the European market to take a dovish turn. DAX Futures trading in the international market was down by 0.45% ahead of German market hours. Dovish cues from Asian markets combined with subdued risk appetite in European markets are expected to pressure DAX into range bound movement with dovish cues across today’s trading session.
This article was originally posted on FX Empire
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