DAX Index Price Forecast – DAX to Open Positive Supported by Hawkish Investor Sentiment & Positive Influence From Allied Markets

Germany equities were mixed at the close on Tuesday, as gains in the Software, Food & Beverages and Technology sectors propelled shares higher while losses in the Transportation & Logistics, Chemicals and Construction sectors led shares lower. At the close in Frankfurt, the DAX gained 0.19%, while the MDAX index fell 0.04%, and the TecDAX index climbed 1.67%. Advancing stocks outnumbered falling ones by 358 to 341 and 81 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 3.88% to 13.81. European markets closed on positive note yesterday as major global currencies managed to hold level against US Greenback in broad market despite rise in US Treasury yields.

Investors Focus Remains on Forward Guidance in FOMC Update Scheduled Later Today

Asian shares inched up on early hours of Wednesday, as Chinese stocks extended their recovery to hit eight-week highs on receding fears about the trade war as well as hopes China’s weighting in the global benchmark MSCI will be increased. Other markets were more subdued as U.S. bond yields edged near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve and as international oil prices rose to four-year highs. Wall Street shares were mixed overnight, as rises in energy shares on higher oil prices and gains in consumer discretionary shares following strong U.S. consumer confidence were offset by falls in many other sectors. U.S. consumer confidence hit an 18-year high, adding to a string of recent U.S. data that pointed to the strong U.S. economic momentum, despite concerns about trade wars U.S. President Donald Trump is waging.

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Fed funds rates futures implied that traders have fully pricing in a rate hike during today’s FOMC statement on interest rate decision and are also expecting another 85% chance that the Fed would raise rates again in December. Today’s investor focus will be mainly on forward guidance in statement from the US FED. Major currencies are trading flat ahead of FOMC update but USD could not make any considerable gains and if forward guidance meets public expectations, global currencies are expected to resume their recent bull run indicating high risk appetite among global investors. DAX Futures in international market traded positive ahead of European market hours up 0.21% on the day supporting positive opening in German stock market. DAX is expected to open positive and trade bullish across today’s market hours supported by positive risk sentiment in forex and equity markets.

This article was originally posted on FX Empire

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