Yahoo Finance DAX Index Daily Fundamental Forecast – January 15, 2018
The DAX index moved sideways for much of the day on Friday despite a major political breakthrough for Merkel. But that seemed to have very less impact on the index and the index finished the day on Friday just above the 13200 region but that should give enough hope for the bulls for the new week though it is likely to be a much more bigger battle between the bulls and the bears than what one would expect.
DAX Likely to be Choppy
The index opened in a steady manner on Friday and under normal circumstances, it should have been buoyed by the reports that said that the German leader Merkel had managed to clinch a deal for a coalition. This is following months of uncertainty over the government formation and this should have come as a boost for the markets and the economy and a relief for the people as a failure in these talks would have resulted in another election which is something that not many would have wanted as it would only prolong the uncertainty and the confusion.
But this development did not bring about as much joy in the markets which have been under pressure over the last couple of days as the ECB seeks to end the QE by the end of the year. They have mentioned as much in their minutes of their meeting from December and this has meant the drying up of the funds into the stock markets. This has in turn kept the index under wraps and this is the reason why we are seeing the index consolidate with a bearish bias over the last few days.
Looking ahead to the rest of the day, we are likely to see a steady opening in the DAX following from the strong close to the indices in the US and we have to wait and see whether the bulls would be able to seize control and push the index higher through the 13300 region and further during the course of the week.
This article was originally posted on FX Empire
