DAX Index Daily Price Forecast – DAX To Continue Bearish Price Action For Fifth Consecutive Session

Germany equities were lower at the close on Monday, as losses in the Software, Retail and Consumer & Cyclical sectors propelled shares lower. At the close in Frankfurt, the DAX declined 0.85%, while the MDAX index lost 1.24%, and the TecDAX index fell 1.67%. Declining stocks outnumbered rising ones by 471 to 241 and 63 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 0.21% to 19.15. Major indices across key European markets closed in red yesterday over bearish investor sentiment inspired by comments from US Fed member Robert Kaplan about slowdown in economic growth in Europe and increasing spread difference between Italy and German bonds over comments from Italian economic minister Tria about no intentions to make any change to Italian budget regardless of spread widening.

Italian Budget Crisis & Bearish Macro Data Likely To Fuel Bear Market Scenario

Italian budget crisis has left a sour taste in investors’ appetite as both analysts and investors continue to await EU’s response for Italian budget submitted earlier. A rout in US wall street influenced by bearish performance of tech stocks in defiance of holiday season expectations with thanksgiving holidays nearby has inspired a bearish price action across Asian equity markets today morning with Key indices such as NIKKEI 225 & FTSE STI losing over 1% while SHANGHAI COMPOSITE & HANG SENG falling over 2% as investors take cautious stance in China & Hong Kong due to headlines indicating mounting tensions between the US and China. While Forex markets display positive performance, equity markets display data in contrast with all major indices across Asian markets trading in red over cues from Wall Street.

Investor sentiment in EU region remains cautious when equity market is concerned despite the common currency hitting new 12-day highs as investors await German PPI data which has dovish monthly forecast which could be interpreted as negative economic growth sign. DAX futures trading in international market were down by 0.34% ahead of Frankfurt market opening which indicates that DAX index could resume yesterday’s bearish declines over dovish cues from Wall Street and other international equity market. If DAX trades bearish today for fifth consecutive session the total decline would reach nearly 3% as the index has already declined nearly 1.9% and a sharp decline during today’s market seems like playing field in favor of bears.