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DAX Index Daily Fundamental Forecast – August 14, 2017

By:
Colin First
Published: Aug 14, 2017, 04:21 UTC

The DAX index recovered a bit on Friday on the back of weak CPI data from the US. It is a measure of the inter relation between the stock markets in

DAX Index Daily Fundamental Forecast – August 14, 2017

The DAX index recovered a bit on Friday on the back of weak CPI data from the US. It is a measure of the inter relation between the stock markets in different parts of the world that events in the US tend to affect the stock markets around the world including Europe. Though the index did recover and it is indeed a sign of stability, it has to be kept in mind that the global risks continue to haunt the markets and hence it is important not to be too carried away by this upmove.

DAX Seeks to Recover

The failure of the CPI data from the US to meet expectations has meant that the the rate hike from the Fed is likely to get delayed a bit more and this is positive for the stock markets and that is why we have seen the stock indices move higher since then. Also, as of this morning, the Asian stock markets have also reacted positively to the development which means that we are likely to have a strong opening to the DAX in the Franfurt session.

DAX Hourly
DAX Hourly

But the global risks and risks specific to Germany continue to loom ahead and this is likely to limit the latest bullish leg in the index. Germany is going to face elections in the month of September and with 6 weeks to go for the elections, the Merkel party is way ahead in many of the opinion polls. But seeing how such large leads have evaporated on the approach of elections in many countries, it continues to be classified as a risk as far as the markets are concerned and hence the DAX is likely to continue under pressure.

Looking ahead to the rest of the day, we are likely to see the DAX start the day pretty strongly and then the bulls are likely to retain their gains through the course of the day though the 12200 region is likely to act as a cap.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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