Yahoo Finance DAX Index Daily Price Forecast – DAX To Trade Range Bound on Cues From International Market
Germany equities were lower at the close on Thursday, as losses in the Food & Beverages, Financial Services and Utilities sectors propelled shares lower. At the close in Frankfurt, the DAX lost 2.37% to hit a new 52-week low, while the MDAX index fell 1.41%, and the TecDAX index lost 1.27%. Declining stocks outnumbered rising ones by 571 to 167 and 41 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 21.14% to 25.33 a new 6-month high. European markets traded dovish and closed in red yesterday despite slight increase in investor risk appetite as investor sentiment in market was significantly weighed down by political and economic woes from multiple fronts in EU area.
US & Asian Equities Trade Positive for Second Consecutive Session
Asia stocks gained on Friday after Wall Street ended volatile trade in the green, adding to the big advances of the previous session, although lingering investor jitters helped support safe-haven currencies such as the yen. U.S. stocks roared back to end in positive territory on Thursday, with the Dow adding 1.14% after suffering steep losses for much of the session. The gains come a day after Wall Street indexes posted their biggest daily percentage increases in nearly a decade following a sharp plunge at the week’s start. However, all three U.S. major indexes remain down more than 9 percent for December following losses earlier in the month, when factors including concerns over the U.S.-China trade war, slowing global growth and wariness towards the Federal Reserve’s tightening cycle took a heavy toll.
Selling pressure on U.S. equities is beginning to dissipate, but the VIX index is still around 29 with investor risk sentiment still recovering. A renewed market slide remains a risk possibility once trading session resumes as usual post holiday season. While stocks showed signs of recovery, lingering market volatility helped keep precious metals and safe-haven currencies such as the yen and Swiss franc in demand. The common currency continues to trade positive providing some level of positive influence on European markets. While economic and political woes continue to plague market, cues from international markets are expected to provide some level of support to Bulls in German market. However DAX futures trading in international market ahead of Frankfurt market opening is down by 0.31% which suggests possibility of two way price action in DAX index with bearish bias exercising greater influence on investor sentiment.
This article was originally posted on FX Empire
