DAX Index Daily Fundamental Forecast – August 31, 2017

The DAX index recovered over the last 24 hours, as was expected and mentioned in our forecast yesterday. The index had fallen below the 12000 region on the back of increase in global risks and fears as North Korea continued its missile tests since the beginning of the week. But with the global leaders handling this risk in an adept manner, the markets have been returning to normal over the last 24 hours.

DAX Recovers as Risks Recede

This has helped the DAX to recover and move above 12000 and the index managed to hold on to its gains till the end of the day and managed to have a bullish close. More importantly, it managed to close above the broken support at 12000 and this should augur well for the trading today. We expect the index to open in the green today though it remains to be seen whether it can sustain the bull run for now.

Though the risks have gone off for now, the uncertainties continue to haunt the markets and hence the risks are never too far off. This is why it is important that the traders are nimble when they trade the stock markets. The DAX is also likely to react to the end of the month flows for today as we look ahead to an important month as far as politics in Germany is concerned. We have the German elections scheduled to be held in September and though Merkel is expected to win again easily, the DAX is likely to trade in a cautious manner in the lead up to the elections.

Looking ahead to the rest of the day, we have the German retail sales data as well as the Flash CPI estimate for the Eurozone and this is likely to keep the DAX buoyed during the day, if they come out stronger than expected.