DAX Index Daily Fundamental Forecast – March 1, 2018

The DAX index continued to move lower as the stock markets around the world suffered from lack of interest and uncertainty among the investors and this affected the DAX as well. We had mentioned as much in our forecast yesterday where we had said that the DAX is likely to return back to the lows of its range and this is what we are seeing now.

DAX Continues Lower

The index is now trading in the low 12300s which should see it moving towards the lows of the range. The index has been under pressure for a variety of reasons which includes the uncertainty among the traders after a massive fall just a couple of weeks back. This has since been followed by a rebound but the rebound did not have the pace or the impact that it is supposed to have and it looked more like a correction of the fall lower rather than any major recovery or a reversal of the trend. That is why the move lower has since taken over once the rebound has been completed.

The DAX has been under pressure due to the tapering of the QE as well which is likely to begin in the coming months. This would lead to a drying up of the funds from the stock markets and many of the investors are worried that this could lead to a larger fall in the stock prices. Also, over the coming weekend, we are going to see a counting of postal votes of the members of the SPD party where they are likely to determine whether they would go ahead with the coalition government or not. Though it is generally believed that they would vote yes and this could lead to a further rebound in the DAX, a vote to the contrary would lead to a series of issues including re-election which no one wants.

Looking ahead to the rest of the day, we do not have any major news from the Eurozone or Germany as the traders await the developments over the weekend. Till that time, we could see the index moving lower and consolidating near the lows.