DAX Index Daily Price Forecast – DAX Could See Two-Way Price Action Based on ECB MPC Update.

DAX index is set to open positive on cues from international market but depending on the outcome of ECB MPC update, there is a chance for a sharp downside move.
Colin First
DAX Thursday
DAX Thursday

Conflicting headlines from American market on Tuesday over Sino-U.S. trade talks was the main driving force behind European equity markets yesterday. While Sino-U.S. trade war proceedings and IMF global growth forecast inspired bearish investor sentiment resulting in major European markets opening in red, equity market saw mixed price action later in the day owing to return of risk appetite in broad market to some extent on headlines that Chinese government planned to increase fiscal spending to boost its economy. However dovish quarterly financial data outcome from some major European companies continued to inspire risk-averse trading activity resulting in a mixed market performance at the close of European market hours.

Cautious Investor Sentiment Continues To Limit Gains

German stock market saw mixed performance on cues from local and international market mirroring price action in the overall Euro area market. While risk appetite had returned to market yesterday, investors held back from placing major bets as they awaited European Central Bank’s monetary policy committee meeting scheduled to occur today. While the DAX index which represents overall German stock market saw a decline of 0.17% at end of the day, sectoral indices had mixed outcome. Two other most-watched indices MDAX and TECDAX closed positive for the day up 0.41% & 0.60% on the day as sectoral indices saw divided action which left stocks in Frankfurt stock exchange on a tie at the close of German market hours. Out of total 778 stocks in exchange, 354 closed in green and 332 closed in red while rest remain unchanged at end of the day.

Stocks which saw most gains were from Technology, Utilities, Transportation and Logistics sector while stocks which saw decline are Chemicals, Construction, Food and Beverage sectors. Major indices and stocks from Asian indices saw positive price action on cues from Wall Street but gains were limited as investors continue to exercise caution ahead of today’s ECB MPC meeting update and Senate meeting in the U.S. which will vote to decide on re-opening US government. DAX futures trading in international markets was up by 0.33% ahead of Frankfurt market opening which suggests German equities are likely to open positive for the day. But downside price action cannot be ruled out as investors remain cautious ahead of ECB MPC update and dovish forward guidance for rate hike plans or comments which stress on recent economic slowdown in German markets are likely to push DAX into sharp declines.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.