DAX Index Daily Fundamental Forecast – August 15, 2017

As we had mentioned in our forecast yesterday, the DAX index traded in a strong manner during the course of the day yesterday and it should make the DAX bulls happy that they managed to hold on to the gains to close the day. We had said that the weak CPI data from the US on Friday has had a positive effect on the stock markets as it basically postponed the next rate hike from the Fed and with the stock indices in the US closing higher on Friday, we had expected the DAX to follow and open higher on Monday.

DAX Recovers on Global Cues

This was the exact same thing that happened yesterday as the DAX opened higher for the day yesterday as there were not much developments over the weekend and this led to a lull in the tension between North Korea and the US. The more that they issue threats to each other which then fizzle out, the more likely it is that the markets are likely to recover from such risks in the future. The stock markets around the world began to stabilise yesterday as most of the major stock markets in Asia recovered and this theme gradually moved to the European markets as well.

The DAX index shot through the 12000 region on opening as it opened higher with a gap and the index then moved through the 12100 region and it ended the day below the 12200 mark for the day. It managed to hold on to its gains during the day which should encourage the bulls and make them look forward to more gains during the day today.

Looking ahead to the rest of the day, we do not have any major news from Germany for the day today and so we expect the DAX index to take the cues from the global stock markets and continue its recovery during the day. The region around 12350 is likely to act as the ceiling in the short term.