DAX Index Daily Fundamental Forecast – April 25, 2017

The DAX is trading steady early Tuesday after posting a steep gain the previous day following a centrist victory in the first round of the French presidential election. The benchmark DAX is trading 12456 after posting a 3.4 percent gain on Monday.

Gains are being supported early in the session by SAP which is up 1 percent. The software giant reported a 9 percent drop in first-quarter profit, but sales of its internet cloud-based service continued to grow.

Sportswear company Puma was up 2.5 percent after reporting a new quarterly record for sales between January and March.

The banking sector was down on profit-taking with Commerzbank and Deutsche Bank posting the most notable losses, down 1.5 percent and 0.7 percent respectively.

It was a light day as far as economic data was concerned. The total value of new orders received by the German construction industry increased 2.0 percent sequentially in February. On an annual basis, construction orders grew 4.8 percent in the month.

In other news, European Central Bank policymaker Ewald Nowotny said in an interview to the Australian newspaper Der Standard that uncertainty about the future measures of the Trump administration is particularly worrying and the problems from Brexit may be underestimated as of now.

The DAX is likely to be influenced by whether it’s a risk-on, or risk-off day. Risk-on will mean investors are continuing to react to the French elections. Risk-off will mean investors are being guided by the events in North Korea.