Optimism surrounding Sino-U.S. trade talks on weekend headlines inspired a fresh wave of risk-on trading activity in European markets which had great influence on Frankfurt equity markets as well. Sino-U.S. trade war is an issue that has had a great impact on the performance of the global equity market. An escalation of which is expected to drag the growth rate of the global economy further down the scale. However, the possibility of a trade deal between two parties following the upcoming meeting and the month-end meeting between Presidents of two nations is supporting the market bulls to great extent and this lead to all major European equities closing in green during yesterday’s trading session.
Optimism Surrounding the Sino-U.S. Trade Deal Continues To Underpin Market Bulls
German equities saw positive price action across its major stocks and futures yesterday. Out of total 778 stocks trading in the exchange, 530 stocks closed in green while 75 closed unchanged at end of trading session. As per data on the performance of sectoral indices from Frankfurt stock exchange, all sectoral indices closed positive for the day and stocks from bank, food & beverage and transport & logistic sectors were the top gainers of the day with all three indices seeing more than 2% increase in value. Further, all three major German indices also saw a sharp upside move and DAX, MDAX & TECDAX indices closed for the day with 0.99%, 1.17% & 1.49% increase in value respectively.
Asian equity markets today saw positive price action as optimism surrounding upcoming Sino-U.S. trade talks remain high in the broad market. Further news that another U.S. government shutdown in unlikely as U.S. lawmakers have managed to reach a deal on border security funding also supported positive price action and underpinned market bulls resulting in major Asian indices trading in Green. The German equity market is highly susceptible to positive price action in U.S. Wall Street and likely to trade positive today as the hawkish signal from the Asian market further adds to investors risk appetite. DAX futures trading in the international market was up by more than 0.60% ahead of the Frankfurt market opening suggesting that German equities and DAX index are likely to see positive price action today.
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This article was originally posted on FX Empire
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