DAX Index Daily Price Forecast – DAX To Open Positive on Bullish Cues From International Markets
Germany equities were lower at the close on Thursday, as losses in the Insurance, Chemicals and Construction sectors propelled shares lower. At the close in Frankfurt, the DAX lost 1.48% to hit a new 52-week low, while the MDAX index declined 1.43%, and the TecDAX index declined 0.26%. Declining stocks outnumbered rising ones by 610 to 127 and 41 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 9.53% to 18.73 a new 1-month high. Despite US treasury yields pulling back, equities were unable to regain ground which resulted in sharp sell-off activity in Asia and Europe during yesterday’s market hours. Investor sentiment was frail though as Wall Street’s fear gauge rose to an eight-month high, pointing to more downside risk and this resulted in US equities and major indices closing in red yesterday.
Chinese Markets Have Low Impact From US Tariff as Per Macro Data Update
Equity markets saw their biggest shakeout since February this week and this move is viewed as a result of various factors such as worries about the impact of a Sino-U.S. trade war, a spike in U.S. bond yields this week and caution ahead of earnings seasons. Asian shares found a slightly firmer footing on Friday to set course for their first gains in two weeks, but the rout continued in Shanghai where shares hit lows last seen in 2014. However except for Japan’s NIKKEI, all other major indices managed to make Bull Run in later half of Asian indices. This move is supported by the fact that Chinese trade figures on Friday showed China’s trade surplus with the United States hit a record high in September, providing a likely source of contention with U.S. President Donald Trump over trade policies and the currency.
The data showed solid expansion in China’s overall imports and exports, suggesting little damage from the tit-for-tat tariffs with the United States. So far this week, Chinese and U.S. shares are among the worst performers in a sign investor worries about the trade war are deepening. But a positive performance in Chinese markets in Asian market hours was a bullish sign for European equities. DAX futures traded positive in international market ahead of European market opening indicating positive signs for German equities. DAX index is expected to open positive for the day and is likely to see over 0.50% increase in value as trading session comes to close for the day as DAX futures were trading with over 1% increase in value in international market.
This article was originally posted on FX Empire
