DAX Index Daily Fundamental Forecast – November 30, 2017

The DAX index have been buoyant since the beginning of the week and that trend continued for most of the day yesterday though some profit taking towards the end of the day led to the index moving lower towards the close. But for most of the day, the index tried to keep up with the US stock indices and broke through the 13100 region and went as far as the 13200 region before being met with some selling.

DAX Remains Buoyant

The 13200 region is likely to act as some strong resistance for now and it is going to take a lot of fundamental changes for the index to crack through this region. The US stock indices have been moving steadily higher as the tax reform bill moves through the Senate in a smooth manner. If the bill does get passed, it will be a shot in the arm for Trump and his team and it would also mean a lot of tax savings for the corporates 1 year from now and this is likely to lend support to the stock markets in the US. This is likely to have an effect on the other stock markets around the world.

This is one of the reasons why the DAX has been moving higher over the last couple of days. Also yesterday, we saw growing hopes of a deal being reached in the Brexit talks and we believe that any kind of a deal in the talks is likely to be beneficial for both the UK and the Eurozone in the long run and that is also one of the reasons why the DAX moved higher yesterday. The CPI Inflation data came in as per expectations and hence did not have much of an impact on the markets.

Looking ahead to the rest of the day, we have the CPI Flash estimate from the Eurozone but we do not have any major news from Germany. Hence expect the DAX index to consolidate and range between the 13000 and 13200 region for today.