DAX Index Daily Price Forecast – DAX To Continue Yesterday’s Positive Price Move

European equities yesterday saw positive price action in all major European stock exchanges as equities rebound post the high level of declines the previous week. Risk appetite remained high in the broad market on hopes and expectations for critical Brexit issues to be addressed this week and positive cues from Chinese equities. Also, European markets saw investor sentiment turn hawkish on news reports which hinted at top-level management of Deutsche Bank and Commerzbank have agreeing to meet and discuss the possibility of a merger. This news boosted the performance of all major European bank shares providing a strong positive fundamental support.

Multiple Factors Underpin Healthy Risk Appetite in Market Today

The positive investor sentiment and high level of risk appetite in the broad market along with positive EURO helped German stock market close on a positive note. This was clearly evident from the performance of benchmark indices in Frankfurt stock exchange yesterday as all major benchmark indices closed in green. Out of 778 stocks trading in Frankfurt stock exchange, 502 stocks closed in green while 75 closed unchanged at end of trading session. As per data on the performance of sectoral indices in the exchange, out of 18 sectoral indices, 17 indices closed in green at the end of the day with stocks from Banks, Basic Resource and Technology sectors seeing high levels of gains up by more than 1.40% each.

At EOD, the three most watched major indices from Frankfurt exchange DAX, MDAX & TECDAX saw 0.75%, 1.07% & 1.58% increase in value. Asian equities traded positive in the broad market today on positive cues from US Wall Street and on news of the last min legally binding assurance from EU to begin working on an alternative for Irish backstop by December 2020. As key issues are to be addressed in Brexit parliament today, no-deal Brexit or outcome that leads to a second Brexit referendum are the two most anticipated scenarios in which outcome could turn out, for the market to continue positive price action. DAX futures trading in the international market saw two-way price action but was up by 0.07% ahead of the Frankfurt market opening. Positive cues from the international market, increased risk appetite and positive investor sentiment on hopes for avoiding no-deal Brexit over last-minute assurances etc.. are factors expected to help German equities and DAX index open positive and trade with bullish bias across the day.

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