Yahoo Finance DAX Index Price Forecast – DAX Turned Positive Supported By Positive European Equities.
German DAX is driven by bulls today as the pair clocks new monthly high and is expected to maintain stable uptrend movement during today’s market hours. DAX is currently trading at 12702.20 up 0.83% on the day after hitting an intra-day high of 12,740.12. The uptrend movement of DAX is supported by positive opening of European equities which took inspiration from gains across the globe as markets across Europe were picking up the baton from Asia where stocks rose most notably in China, as the Shanghai Composite bounced back, gaining 2.74% after hitting fresh multiyear lows Monday.Deutsche Bank stocks was among those carrying the DAX for now but in general, sentiment is very much positive to start the trading day for equities. Chinese stocks closed the day at the highs with the Shanghai Composite and CSI 300 index posting gains of 2.7% and 2.9% respectively.
Gain in Asian Market Influenced Positive Opening in European Market
Last week, the DAX broke the upward channel from the late-June low putting the index in semi-precarious position. European shares bounced back on Tuesday as investors cheered UniCredit results but gave Germany’s Commerzbank a damp reception, while an outlook cut from Pandora dented the stock.Europe’s gains came on the heels of a stronger trading session in Asia as investors’ focus shifts from a murky, complex trade war to company earnings which they can more easily pin down and price in to markets. UniCredit shares rose after Italy’s biggest lender by assets reported second-quarter profits fell less than expected of under-promising and over-delivering continues. Unicredit traded 1.8% higher by 0830 GMT as investors also digested the bank’s weaker capital buffer. Its CET1 ratio fell due to the sharp sell-off in Italian government bonds on political upheaval.
Commerzbank shares fell 1.8% to the bottom of Germany’s DAX, however, as investors reacted badly to a weaker-than-expected capital buffer and its forecast of higher costs for its full year of 2018. The market was shaking off data that showed a decline in German industrial production, which comes on the heels of Monday’s economic update that revealed a plunge in manufacturing orders from the largest economy in the European Union, with the country’s economic ministry placing some of the blame for that result on trade tensions. As trade tensions appeared to dissipate for the moment, investors remained focused on upbeat earnings in US Wall Street, while climbing oil and material prices also parlayed into gains for Europe. Moving forward DAX is expected to move flat as German macro data was mixed for the day with Industrial Production & Trade balance seeing negative outcome while trade balance saw positive outcome while equities continue positive movement.
This article was originally posted on FX Empire
