DAX Index Daily Fundamental Forecast – September 19, 2017

The DAX Index had a strong bullish day yesterday on the back of improving risk sentiment and with the investors also gaining confidence. But with the global risks continuing to reside under the surface and the German elections also looming on the horizon, we are unable to see any strong bullish uptrend as yet as the market waits for the dust to settle down before it takes a decision on which way it wants to go.

DAX Remains Choppy

This was evident in the trading yesterday as the index began quite strongly and made a move through the 12600 region but this move lasted only for a brief while as it broke back down below the region due to heavy selling and it closed the day back within its overall range. This is likely to continue in the short term and it is indeed a pity that the DAX bulls are unable to join the party that seems to be going on in the rest of the stock markets around the world.

The elections in Germany are scheduled to be held on September 24 and though the re-election of Merkel as the President appears only to be a formality at this point of time, the election pundits do not want to call it either way just yet and that is why we are seeing the DAX index moving within a consolidation range over the past few days and this is likely to continue till this Sunday when the elections and the results would be known.

Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone for the day. The final CPI data from the Eurozone came in as per expectations and this did not have much of an impact on the markets. Expect some tight range trading for today as well.