DAX Index Daily Price Forecast – DAX Likely To Erase Previous Session’s Gains Owing to Bearish Cues from International Market

Dax to take dovish price action today owing to risk off investor sentiment induced by bearish cues from overseas markets.
Colin First
DAX Friday
DAX Friday

Germany equities were higher at the close on Thursday, as gains in the Construction, Consumer & Cyclical and Industrials sectors propelled shares higher. At the close in Frankfurt, the DAX gained 1.03%, while the MDAX index climbed 1.66%, and the TecDAX index climbed 0.82%. Advancing stocks outnumbered falling ones by 407 to 303 and 67 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 2.60% to 22.12 a new 6-month high. European equities saw mixed performance yesterday owing to influence from ECB update which mentioned that QE program is going to proceed as per schedule despite Italian crisis and economic slowdown owing to geo-political issues.

Risk off Investor Sentiment Is Likely Influence Bearish Price Action in DAX

Asian shares slipped again on Friday morning, deepening this week’s markets rout, after disappointing results from Alphabet Inc and Amazon.com heightened concerns over the outlook for U.S. corporate earnings, global trade and economic growth. Chinese shares have been hit by volatility this week amid a string of official announcements and measures aimed at supporting the markets following a recent plunge. The heavy sell-off has raised concerns about risks posed by about $620 billion worth of shares pledged for loans. Financial markets have been whipsawed in recent sessions on concerns over global growth as investors fretted over Sino-U.S. trade frictions, a mixed bag of U.S. corporate earnings, Federal Reserve rate hikes and Italian budget woes. A slowdown in China has been particularly worrying for policy makers and investors, hitting asset markets from stocks to currencies and commodities.

European markets are expected to take bearish turn today owing to increase in risk off market sentiment following bearish rout in Wall Street during North American market session last night. The common currency EURO which is trading global markets has been trading flat against US Greenback in Asian market hours. DAX futures trading in international market ahead of London market hours was trading bearish with over 1.30% decline in value indicating possibility for bearish price action in German stock market today. DAX is likely to open bearish and maintain downtrend move across the day with possibility for decline over 1% in value at E.O.D.

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.