Yahoo Finance DAX Index Price Forecast – German DAX Lost Over 3% Last Week & Is Expected To Continue Dovish Movement on Global Cues
Germany equities were higher at the close on Friday, as gains in the Software, Telecoms and Financial Services sectors propelled shares higher, however the pair lost nearly 3.31% as index maintained a steady downtrend movement for nearly 6 consecutive trading sessions on Geo-political woes stemming from trade war and weak Euro resulting from emerging market currency crisis. At the close in Frankfurt, the DAX added 0.04%, while the MDAX index gained 0.19%, and the TecDAX index gained 0.60%. Declining stocks outnumbered rising ones by 381 to 325 and 80 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 3.54% to 17.68. World share indexes registered their biggest weekly declines in almost six months in a volatile session on Friday as investors weighed solid U.S. economic data against expectations for higher interest rates and U.S. trade tensions on multiple fronts.
Equity Markets Take a Hit from Ongoing Global Trade Wars
Asian shares started the week in the red again on Monday, faltering for the eighth straight day and the dollar climbed against major currencies after U.S. President Donald Trump raised the stakes in the heated trade dispute with China. Japan’s Nikkei opened lower but quickly pared losses after revised second quarter gross domestic product data showed the world’s third biggest economy grew at its fastest pace since 2016. Meanwhile all other major Asian equity market such as Hong Kong, Shanghai, Singapore, India are trading in red as US has opened an all-out trade war against all major allies of US including Europe, Canada, Japan and China demanding that they submit to his trade terms. Pressure from global trade wars has resulted in equity markets across globe turning bearish across last week.
As equity markets took a steep nose dive, short term traders look at the situation as an opportunity to make profit on short to medium term outlook resulting in increase in buying activity. German DAX futures trading in international market was moving positive ahead of European market hours supportive of positive opening in today’s equity market. German DAX is expected to open positive for the day but overall momentum is expected to remain flat or neutral as cues from oversea investors and allied markets are expected to provide negative influence during today’s market hours.
This article was originally posted on FX Empire
