DAX Index Daily Fundamental Forecast – September 1, 2017

The DAX index had a strong day yesterday and the key was that it was able to sustain the bullishness during the course of the day and managed to close the day in the green. The index also managed to close above the important round figure of 12000 which means that this region should again act as support in the short term.

DAX Likely to Consolidate

The stock markets have been gaining back some of their losses and as part of that, the DAX index recovered all the losses that it had suffered during the first half of the week. The index had fell at that time due to the increased global risk and uncertainty following the missile test from North Korea. But as of yesterday, the index has managed to recover all its losses as the risks recede on the global scene.

Though the index has recovered, we do not expect the index to have a lot of bullishness in the period ahead as we expect consolidation in the index during the first half of the month. It is likely that the traders and investors wait for further signals on the likely winner of the elections in Germany in this month, before they commit themselves in either direction. It is clear that the investors have got it all wrong, when it comes to elections, over the last year or so and so they would not want themselves to be caught napping once again. Hence this is likely to be the reason for the consolidation in the short term.

Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone but we expect the stock markets to trade steady during the course of the day. The NFP data is scheduled to be released from the US today but we do not expect it to have too much of an impact on the DAX Index.