Yahoo Finance DAX Index Daily Price Forecast – DAX To Consolidate Hold Recent Gains
European markets saw positive price action in all major stock exchanges supported by healthy risk appetite in the global market. Optimism surrounding Sino-U.S. trade talks influenced by headlines which stated that Chinese Vice Premier Liu He is traveling to U.S. to resume high-level trade talks. Further, better than expected Euro area macro data and Brexit progress also supported positive investor sentiment in European markets resulting in all major risk assets trading and closing on a positive note. UK PM May and opposition party leader Jeremy Corbyn agreed to collaborate to find a way out of no-deal Brexit outcome while UK house of commons approved coopers amendment facilitating PM May with the power to request longer Brexit extension.
Sino-U.S. Trade Optimism Underpins Market Bulls0.35% on the day
Supported by multiple factors that underpinned market bulls German market saw positive price action across yesterday and closed on a positive note. All 6 benchmark indices from Frankfurt exchange closed in green at end of the day up by more than 1.50% while the three most-watched indices DAX, MDAX & TECDAX saw 1.70%, 1.62% and 1.93% increase in value. DAX index hit a new one month high during yesterday’s positive price action. Out of the total 778 stocks trading in the exchange, 498 stocks closed in green while 86 stocks closed unchanged at the end of the day. As per data on the performance of sectoral indices from the Frankfurt stock exchange, 17 out of 18 sectoral indices closed in green with stocks from Technology and Chemicals sector seeing a high level of gains up more than 3% in value each at end of trading session.
Asian market saw all major benchmark indices and equities saw positive price action across all major stock exchanges supported by Sino-U.S. trade optimism. Hopes for a positive outcome in trade talks between China & the U.S. continues to influence Optimistic investor sentiment in the market. Further, positive cues from US Wall Street is also underpinned positive investor sentiment in the market. However, German DAX futures trading in the international market was down by 0.35% on the day ahead of the Frankfurt market opening. This suggests that the German market is likely to see some level of profit booking activity and corrective price rally but the downside is likely to remain limited owing to cues from the international market. DAX index is expected to consolidate its hold over recent gains resulting in rangebound price action slightly lower from monthly highs across the day.
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This article was originally posted on FX Empire
