Yahoo Finance DAX Index Daily Fundamental Forecast – March 9, 2018
The DAX index shot higher on the return of the risk sentiment in the markets and it is likely that this would continue today as well as we head towards the end of the week. The move higher was brought about by the fact that the indices around the world got a shot in the arm when the tariff plan that was actually signed turned out to be much weaker than what was thought.
DAX Moves Higher
The stock indices has been under pressure since the beginning of the week due to the plan from the US administration to impose tariffs on the import of metals like aluminium and steel and this had led to fear and uncertainty that this tariff imposition could spread to other metals as well, in due course of time. This would have added to the uncertainty and this could have led to a global trade war between the economic majors and this is something that is not good for any economy.
This pushed the stock indices lower and the DAX suffered as well as it fell towards its range lows. But yesterday, Trump signed a tariff plan that was a much watered down version of the original plan with a lot of exemptions for its neighbours like Mexico and Canada and it also kept the door open for other exemptions for other countries as well. This brought joy to the investors and traders who began buying stocks again and this has since helped the DAX to push above the 12300 region and now it looks set to move to the highs of its range again.
Looking ahead to the rest of the day, we do not have any major news from the Eurozone or Germany as all the focus is likely to be on the US and the dollar with the release of the NFP later in the day today.
This article was originally posted on FX Empire
