DAX Index Daily Fundamental Forecast – April 3, 2018

The DAX index is set to open after the very long weekend due to the Easter holidays. The DAX had closed on a strong note last Thursday as the risk sentiment managed to pick up during the course of the week and this led to the recovery of the various stock markets. The rebound began in a slow manner but then it gathered speed and helped the DAX to close the week above the 12100 region.

That rebound and recovery is likely to come under severe test and stress during the course of the day today as the US stock markets fell hard yesterday. This was due to the continued attack on Amazon by the US President Trump in his twitter feed. Though there has been no concrete action on the ground as yet, he has been making it clear that he doesnt view Amazon very dearly as he believes that they have been costing a lot of losses to USPS and also to the offline retailers as well.

This has led to general fear in the markets as the Amazon shares have dropped like a bomb and this has forced the other shares to also follow suit and drop down as well. This led the indices lower yesterday and the effect of that is likely to be felt in the DAX when it opens for trading a bit later in the day. It is going to be an interesting day and we would not be surprised if the lows of the range come back into view in the short term.

Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone for the day and hence it is likely that the DAX would be swayed by the risk sentiment which should keep the index under a lot of pressure for today.