Yahoo Finance DAX Index Daily Price Forecast – DAX To Trade Rangebound With Positive Bias
European markets on Friday saw all major indices and equities trade positive and close in green in all major stock exchanges as the trading session came to close for the month. While the equities and benchmark indices saw sharp declines earlier last week, a recovery in the bond market and optimism surrounding Sino-U.S. trade talks helped ease risk-averse investor sentiment. All major government bond yields both in Europe and other major economies across the globe saw recovery action on Friday. While bond yields recovered from weekly lows it was still the biggest monthly falls since June 2016. As bond market rebound concerns of economic slowdown eased off improving risk on trading activity in all major stock exchanges.
Brexit Woes To Limit DAX’s Gains
German stock market also saw positive price action on Friday. Five of six benchmark indices from Frankfurt stock exchange closed positive for the day. Out of the three most-watched indices from the exchange, DAX and MDAX closed positive for the day with 0.86% & 0.70% increase in value while TECDAX closed for the day with 0.08% decrease in value. As per data on the performance of sectoral indices from Frankfurt stock exchange, 15 of 18 total sectoral indices closed in green. Stocks from Construction, Basic Resources & Technology sectors saw a high level of gains while stocks from Food & Beverage, Telecom and Financial Services sectors saw a sharp loss at the end of the trading session.
Out of total 778 stocks trading in the exchange, 419 stocks closed in green while 76 stocks closed unchanged at the end of trading session. The Asian market is seeing all major indices and equities trade positive on key stock exchanges across the continent. The positive price action is underpinned by bullish cues from Wall Street as optimism surrounding the trade deal between China & U.S.A. and positive bond yields continue to underpin risk appetite in the Asian market. Positive forecast for Chinese Caixin manufacturing PMI also underpins risk appetite in Asian markets. DAX futures trading in the international market were up by 0.57% ahead of European market opening. The German market is highly susceptible to cues from Wall Street. Positive cues from Wall Street and Asian market are likely to influence positive price action in the German equity market. While DAX is likely to trade positive gains may be capped on caution stemming from Brexit woes.
Please feel free to let us know what you think in the comments below.
This article was originally posted on FX Empire
