DAX 30 Fundamental Analysis – for the week of August 22, 2016 -Forecast

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Published: Aug 20, 2016, 07:14 UTC

The DAX 30 dipped at the end of the week but should offer buying opportunities this week but volume will remain low as we see the end of vacation season.

The DAX 30 dipped at the end of the week but should offer buying opportunities this week but volume will remain low as we see the end of vacation season. The index is trading at 10544.36 down 1.58%. The DAX outperformed several other Eurozone markets on Friday, including the CAC 40 and IBEX 35, but underperformed versus the FTSE 100, which was off only marginally. For the week, the DAX declined 1.6%. This comes after the prior week’s 3.3% gain, a move which lifted the Index more than 20% from February 2016 low.

Coming into this week, the DAX 30 was overbought and vulnerable to a pullback. Signs of hesitation developed on Monday, with a close well off the highs of the session, warning buying was running out of steam. The ensuing pullback has completed a 38.2% retracement of the August rally, qualifying as a minimal pullback that leaves the Index in a strong technical position to revisit the recent rally highs over the near term.

European stocks finished Friday in the red, as a sharp decline in mining stocks and banks added pressure to the region, while investors kept an eye on oil’s fluctuations and individual stock news. European markets fell further into the red on Friday afternoon, on the back of weak trade in the U.S., as investors overseas digested the hawkish rhetoric from Federal Reserve officials.

Several Fed officials have commented on when might be the best time for the central bank to raise interest rates, especially as the Fed released the minutes from its July meeting on Wednesday. Prior to that release, New York and Atlanta Fed presidents William Dudley and Dennis Lockhart said a September rate hike may be on the table.San Francisco Fed President John Williams also signaled support for a rate hike in the near future, saying that waiting too long could be costly for the economy.

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Week of August 22-25, 2016

Date	Country	Name	Volatility	Previous
8/23/2016	GBP	Inflation Report	3
8/24/2016	EUR	GDP w.d.a (YoY)	3	1.8
8/24/2016	EUR	GBP s.a (QoQ)	3	0.4
8/24/2016	EUR	GDP n.s.a (YoY)	3	3.1