Yahoo Finance DAX Index Daily Fundamental Forecast – February 19, 2018
The DAX index continued its recover on Friday on the back of improved risk sentiment but the rise has been pretty slow and this means that the retail traders and the speculators are yet to join in the bullish leg which would in turn mean that the run higher is on weak legs.
DAX Continues in Steady Manner
The US stock indices have been recovering after the fall from the previous weeks and the recovery has been strong and steady so far. But this kind of price action has not been shared by the European stock markets though they have been recovering as well. this recovery has been quite slow as the traders continue to deal with uncertain times. It is ironical that the traders seem to be lost with uncertainty at a time when the European economy is doing really well and this is indeed one of the quirks of the market.
As we have been saying in few of our forecasts, the DAX index continues to remain week as the possibility of the QE coming to an end continues to haunt the stock markets in Europe.Each good incoming data that exceeds the expectations only increases the possibility of the QE being tapered and coming to an end sooner rather than later and this is something that is likely to be a drag on the stock markets due to the fact that this would mean that the funds that are being pumped into the markets would also come to a stop. This pressure is likely to continue on the DAX in the medium term and hence we do not expect any bounce to last long.
Looking ahead to the rest of the day, we do not have any major economic data or news from the Eurozone or Germany and the weekend has also been generally quiet on the economic news front. So, we can expect some bullish consolidation but this will be slow and steady and we do not foresee any major rise in the markets.
This article was originally posted on FX Empire
