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Colin First
DAX Tuesday

Germany equities were lower at the close on Monday, as losses in the Construction, Media and Chemicals sectors propelled shares lower. At the close in Frankfurt, the DAX declined 1.54% to hit a new 52-week low, while the MDAX index declined 2.06%, and the TecDAX index fell 1.41%. Declining stocks outnumbered rising ones by 604 to 115 and 60 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 7.64% to 24.09. European markets struggled on Monday and were weighed by persistent risk-off sentiment following a poor ending for US shares on Friday and general risk-off due to the political drag in European markets. Overall investor sentiment shows high level of risk averse activity as geo-political and local woes hurt risk appetite.

Weak Macro Data Signals Economic Slowdown And Drags DAX To 52-Week Lows

A gauge of global equities stumbled on Monday, as losses in Europe and Asia extended to Wall Street on new signs world economic growth was being curbed by the U.S.-China trade spat, but was off early lows as U.S. stocks turned positive. Asian shares are trading mixed on Tuesday morning as Japan and Singapore markets continue to see down trend price action while China and Hong Kong stock markets trade in green ahead of London market hours. The positive price action in Chinese equities was influenced by news that Beijing and Washington are discussing the next steps in their trade talks, but its advance were likely be limited due to the dollar’s gains over Brexit worries. Investor concerns over global growth are expected to continue to weighing down global equities in near future.

While Geo-political issues such as Sino-U.S trade spat, Brexit woes and French yellow vest protests continue to hurt investor sentiment in global front, domestic factors are also providing dovish influence to German equities as macro data releases hint at economic slowdown in German market with most recent update being Germany’s Federal Statistical Office release which hinted at narrowing trade surplus in Germany similar to other major markets. DAX index trading in international market is down by 0.14% ahead of Frankfurt market opening hinting at continued downward price action during today’s market hours. DAX index has lost nearly 7.56% over the last 5 consecutive trading sessions each of which closed in red. DAX could trade range bound over cues from international markets but downside bias is likely to remain intact.

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