DAX Index Daily Fundamental Forecast – November 29, 2017

The DAX index moved higher during the course of the day yesterday on the back of some strong data from Germany and also due to the general bullishness around the markets yesterday as the dollar was buoyed and the risk sentiment picked up around the globe. This is expected to continue for the day.

DAX Moves Higher on Improved Risk

There has yet not been any deal reached between Merkel and any of the parties with which she is in negotiations at this point of time, in the hope of thrashing out some deal in due course. But the DAX was buoyed by some strong consumer confidence data from Germany which came in stronger than expected. This is just a continuation of the strong data being thrown up by the German exocomy and this trend is expected to continue in the future. It has to be noted that the data this week is from the days before the political crisis and may not reflect the current picture which we do not expect to be much different as far as the economy is concerned.

In the global markets, we have been seeing the dollar well bid on  the back of the continued progress of the tax reform bill in the US. This has also buoyed the US stock markets during the course of the day yesterday and this should help in a strong opening for the DAX today though the missile launch from North Korea, which happened late in the day yesterday/today morning is likely to be a dampener as well.

Looking ahead to the rest of the day, we have the German CPI data later during the London session and this should to come in either better or atleast as per expectations. If this happens, then we can expect the DAX index to get a further boost during the day which should help it to move higher through the 13200 region.