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DAX Index Price Forecast – DAX Turns Range Bound Over Mixed Cues from Global Market

Germany equities were mixed at the close on Wednesday, as gains in the Technology, Software and Transportation & Logistics sectors propelled shares higher while losses in the Utilities, Retail and Pharmaceuticals & Healthcare sectors led shares lower. At the close in Frankfurt, the DAX lost 0.12%, while the MDAX index gained 0.02%, and the TecDAX index lost 0.01%. European market saw mixed outcome on Wednesday as Germany’s DAX fell 0.07% while in France the CAC 40 was nearly flat at end of day up 0.01% and in London the FTSE 100 was up 0.77% at close of European market hours. DAX has been trapped inside short price range near Mid-July’s price action across month of August 2018 so far. The pair is expected to continue moving range bound as local market remains relatively silent. Global stock markets usually tend to gain influence from allied market performance and European stock market saw mixed outcome on Wednesday as No-deal Brexit scenario between Europe and Britain came into focus amid news thin market.

Brexit Woes Affect European Market Amid Mixed Cues from US & Asian Stock Market

US Stock market was mostly bearish on Wednesday as investors remain cautious over Sino-U.S trade war woes, however the Nasdaq Composite closed marginally higher on Wednesday, notching its longest winning streak since March. Chinese stocks market is trading positive across Thursday’s session despite the country retaliating with additional tariff of 25% on $16 billion worth of U.S. imports from fuel to autos. The tariffs will apply to billions of dollars in U.S. gasoline, diesel and other oil products, though not crude. A no-deal Brexit will cause a disturbing rupture across not just Europe but the west and this factor is greatly weighing down key European economies and with UK Prime minister Theresa May taking up the matter in personal hands to negotiate a deal, European market is greatly affected by proceedings.

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German stock market is expected to open flat and trade with slight upward inclination as Germany and Spain reach agreement on migrant return. With local political proceedings supportive of economic progress and mixed cues from global events, today’s market will continue to see range bound movement as there is a lack of decisive trigger for steep climb. DAX will continue to take cues from allied European markets as trading session proceeds further but the chance of index reaching a new monthly high this week is highly unlikely. The DAX volatility index, which measures the implied volatility of DAX options, was up 2.14% to 15.78. Automotive, Pharmaceuticals & Technology sectors stocks are key focus during today’s trading session. The index will see strong resistance around 12730/12739 as trading session moves forward for rest of this week.

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This article was originally posted on FX Empire

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