Dax Index Daily Price Forecast – Dax To Trade Positive On Strong Fundamentals

European market yesterday saw all is equities and major indices trade positive across the session and close in green with significant gains. The positive price action was inspired by risk on investor sentiment in the broad market on positive cues from U.S. Wall Street over border wall deal reports and optimism surrounding upcoming Sino-U.S. trade talks. Further, the positive investor sentiment was underpinned by comments from European central bank members yesterday. During their speech yesterday, ECB member Jens Weidmann, President of the Deutsche Bundesbank and Governing Council member Nowotny downplayed economic slowdown in euro area activity and hinted at a possibility of reconsidering rate hike plans for 2019 in summer. This brought forth a fresh wave of positive price action with significant fundamental support for bulls offsetting influence from recent spread widening of German long term bonds.

Sino-U.S. Trade Talk Optimism Underpins Market Bulls

This resulted in Frankfurt stock exchange seeing positive price action across most of its major stocks and futures yesterday. Out of total 778 stocks trading in the exchange, 484 stocks closed in green while 87 closed unchanged at end of trading session. As per data on the performance of sectoral indices from Frankfurt stock exchange, 14 of 18 sectoral indices closed positive for the day and stocks from technology, automobile and chemicals sectors were the top gainers of the day with all three indices seeing more than 2% increase in value. Further, all three major German indices also saw a sharp upside move and DAX, MDAX & TECDAX indices closed for the day with 1.01%, 0.96% & 0.71% increase in value respectively. Asian market today saw all major shares and indices across key markets trade and close in green on positive cues from US Wall Street.

Headlines hit market overnight that U.S. President Donald Trump was open to waiving March 1^st deadline in case the talks show potential for the possibility of a trade deal between two nations. This improved risk appetite in the market as the two-day session between representatives of China & U.S. is set to begin tomorrow and headlines hint at a strong possibility for a positive outcome. DAX futures trading in the international market was up by 0.55% ahead of Frankfurt market opening, Positive investor sentiment in European markets, healthy risk on trading activity in global markets and hawkish cues from US Wall Street and Asian markets are expected to influence and support steady upside price action in Frankfurt stock exchange today. DAX is expected to open positive and trade in green across the day, but Brexit headlines has the possibility to dent momentum ahead of tomorrow’s UK parliament meeting.

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This article was originally posted on FX Empire

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