U.S. Markets closed

DAX Index Daily Price Forecast – DAX To Trade Rangebound on Mixed Cues

Colin First

European equities yesterday saw positive price action and closed in green in all major European stock exchanges aside from Frankfurt stock exchange. News of merger talks between two major German banks Deutsche & Commerzbank provided solid positive fundamentals to European equities. However, the prospect of high job loss as a result of merger dampened risk appetite and investor sentiment in the German market resulting in Frankfurt stock exchange seeing a high level of dovish price action. Brexit uncertainties don’t seem to have any visible impact on price action as progress has stagnated ahead of EU vote on Brexit deadline extension later this week.

Risk Averse Cues From Asia  Are Likely To Cap Gains

Investor risk appetite in European market improved the overall following release of better than expected EU area trade surplus update which also provided additional fundamental support to market bulls. At the end of the trading session, most major benchmark indices in the Frankfurt stock exchange saw a dovish price action with DAX & TECDAX indices down by 0.25% & 0.17% decrease in value while MDAX index was up by 0.28% on the day. Out of the total 778 stocks trading in the exchange, 369 closed in green while 84 closed unchanged as the trading session closed for the day.

As per data on the performance of sectoral indices, 9 out of 18 indices closed positive with stocks from the bank, basic resources, telecom sectors seeing high-level of gains while stocks from Tech, consumer and cyclic, Chemicals sectors seeing high level of loss at EOD. Asian equity market today morning saw mixed price action with a high level of dovish bias. While Hong Kong & Singapore stock market saw positive price action, Japan, Shanghai & Australian stock markets saw dovish price action. DAX futures trading in the international market ahead of European market hours was down by 0.10% on the day. But a look at the performance of common currency in the forex market suggests sentiment in the European market is positive. Dovish cues from the Asian market is likely to cap gains, but positive cues from US Wall Street and healthy risk appetite in the European market are likely to inspire rangebound price action with positive bias in DAX and equities in Frankfurt stock exchange today.

Please feel free to let us know what you think in the comments below.

This article was originally posted on FX Empire

More From FXEMPIRE: