European equity market yesterday saw mixed price action in its major stock exchange. As yesterday’s European market hours saw two major events that were to provide a directional bias for short to medium term price action, investors took a cautious stance. Further, concerns of economic slowdown added to investor woes resulting in high level of dovish price action in European markets. While a positive outcome in both events later in the day helped recover some of the early losses, the majority of European stock markets saw mixed price action with a dovish tone at the end of trading session.
Macro Data Outcome To Provide Directional Cues
German stock market yesterday saw a high level of dovish price action with most major benchmark indices closed in the red. Of the three most-watched German indices DAX & TECDAX closed for the day with 0.46% & 0.17% on the day, while MDAX index was up by 0.16% on the day. Out of total 778 stocks trading in Frankfurt stock exchange, 323 closed in red while 79 closed unchanged at end of trading session. As per data on the performance of sectoral indices, 13 out of 18 indices closed in the red. Stocks from transportation & logistics, pharma & healthcare, and construction sector saw a high level of loss at close of trading session.
Improved risk appetite in the global market, positive cues from European market as key events saw a positive outcome helped Wall Street open on a positive note. Later in the day, gains from technology sector helped major indices and stocks closed on a positive note yesterday. Asian market hours as major indices and stocks from key Asian stock exchanges trade positive on cues from Wall Street. DAX futures trading in the international market ahead of European market opening was up by 0.35% on the day. The German market has closed in red for 3 out of 4 trading sessions so far. While cues from the international market and positive investor sentiment on Brexit deadline extension could facilitate a positive opening for DAX, dovish EURO area macro data outcome could push it into dovish price action later in the day.
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This article was originally posted on FX Empire
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