Yahoo Finance DAX Index Daily Price Forecast – Dax To Trade Range Bound on Subdued Risk Appetite
European equity markets saw mixed performance yesterday despite prevalent risk appetite as investors were cautious ahead of Sino-U.S. trade talk’s outcome. Further, bearish sentiment saw a spike owing to bearish tone visible in EURO area macro data. While German equity markets opened positive during yesterday’s European market hours, disappointing macro data updates from Eurozone and cautious investor sentiment ultimately resulted in all gains made from earlier session being erased near the end of session and major indices closing in the red. Out of total 778 stocks trading in Frankfurt stock exchange, 371 stocks closed in green while 79 closed unchanged at end of trading session.
Headlines Paint Dovish Outlook For European Markets
As per sector indices data from Frankfurt stock exchange, despite most major stocks trading in the green losses from Chemicals, Construction, and Insurance sector resulted in DAX index losing most of the gains made earlier in the day. All three major German indices were in red at the close of trading session with DAX, MDAX and TECDAX down by 0.08%, 0.70% & 0.16% on the day. Further a delay in Sino-U.S. trade deal despite progress in trade talks with key issues being addressed and headlines which hint at possible EU-U.S. trade talks scheduled later this month also likely to go south investor risk appetite is highly subdued in the broad market today. While US Wall Street closed in green, disappointing Chinese Caixin Manufacturing PMI data influenced dovish sentiment in Asian markets.
This resulted in major indices and equities in major Asian markets seeing mixed price action. The optimism of progress helped Chinese indices close in green while Japan’s NIKKEI 225, Hong Kong’s HANG SENG & Singapore’s FTSE STI closed in the red. Further mixed cues are expected to influence subdued price action in the European market. DAX futures trading in the international market ahead of Frankfurt market opening was up by 0.32% on the day. This suggests that DAX is likely to see range-bound price action with neutral bias as subdued risk appetite in broad market and cues from international market suggest that there is little possibility for a sharp move in either direction. However disappointing Euro area CPI data is likely to push DAX index on bears path.
This article was originally posted on FX Empire
