DAX Index Price Forecast – DAX Likely To Trade Downside over Dovish Cues from International Market

European stocks ended Thursday trading modestly higher after struggling during the session, as investors attempted to dispel trade-war angst between the U.S. and China and as shares of financials and the pharmaceutical companies weighed on the broader market. Germany equities were higher at the close on Thursday, as gains in the Consumer & Cyclical, Retail and Industrial sectors propelled shares higher. At the close in Frankfurt, the DAX added 0.34%, while the MDAX index gained 0.71%, and the TecDAX index added 0.71%. Advancing stocks outnumbered falling ones by 383 to 315 and 79 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 3.49% to 15.23 which suggests that traders are expecting very little volatility.

DAX To Open Downside Over Dovish Influence from EURO & Global Cues

Brexit woes continue to haunt European market but its impact on market today is expected to be very less as British market has a bout of first tier macro data releasing today. Meanwhile the global market sentiment on early hours of Friday is dovish as Key Asian markets are trading in red. German market continues to see influence from ECB’s comment that risks to global growth are increasing as the risk of protectionism and the threat of higher U.S. tariffs sap confidence. DAX futures in international market are trading in red ahead of European market hours suggesting bearish opening of DAX today in German market. DAX futures for September 18 which trade in international market were down 0.44% in Asian market hours.

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While German stock market saw positive momentum amid a relatively quiet calendar, global cues are expected to influence dovish sentiment in last trading session of the week. The index is expected to continue its range bound momentum trapped within monthly high and low. Euro is currently trading down in global market as dogged by renewed investor concerns that Italy was heading for a costly and unsustainable spending spree. German stock market is expected to see dovish influence from EURO’s bearish movement as EURO is Germany’s primary currency. RSI & Stochastic indicators which are used to measure momentum of particular instrument also points downside movement suggesting dovish movement for DAX in today’s market.

This article was originally posted on FX Empire

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