DAX Index Daily Fundamental Forecast – September 4, 2017

The DAX index finished strongly for the day on Friday but it is likely to get hit hard today on the back of increase in global risks and tension as well. The DAX has been consolidating and ranging mainly within the 12000 to 12350 region over the last couple of days except for a brief period of one or 2 days and this is expected to continue in the short term as the Germans look forward to the elections in their country during the month of September.

DAX Likely to Open Lower

The index moved higher on Friday as reports began to trickle in saying that the QE tapering updates and action would be delayed till December and not anytime sooner. This was a relief for the stock markets that was expecting the tapering to begin much sooner and that would have meant that the funds from the ECB would have dried up pretty soon. This helped the DAX to trade in a buoyant manner and move through the 12100 region and close the week above that cheering the bulls.

But all of that could come to nought today and we could see the entire bounce being reversed today as there has been an increase in global tension over the last 24 hours as both North and South Korea have begun to do missile tests and thus have escalated the uncertainty in that region. This could assume quite dangerous proportions during the short term and hence we could see the stock markets react adversely to the same. The DAX is likely to open lower today and continue to trade under pressure for the rest of the day.

Looking ahead to the rest of the day, we do not have any major news from Germany for today but the anticipation over the German elections and the tension in the Koreas is likely to keep the DAX index under pressure for the day.