Advertisement
Advertisement

DAX Index Daily Price Forecast – DAX To Erase Yesterday’s Loss & Trade Positive

By:
Colin First
Published: Nov 16, 2018, 07:55 UTC

Dax likely to trade positive over hawkish cues from Asian markets but upside move will be limited over cautious investor sentiment following overnight bearish rout in wall street.

DAX Friday

Germany equities were lower at the close on Thursday, as losses in the Retail, Media and Financial Services sectors propelled shares lower. At the close in Frankfurt, the DAX fell 0.52%, while the MDAX index lost 1.15%, and the TecDAX index fell 0.77%. Declining stocks outnumbered rising ones by 491 to 210 and 78 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 31.26% to 21.29. Fall out in UK’s Political scenario as two more members from UK Prime minister Theresa May’s team resigned from their posts yesterday reverberated across both EU and UK resulting in bearish influence in both markets.

Asian Markets Trade Positive on Sino-U.S. Trade Optimism

This sentiment was further aggravated as disappointing results from U.S. chipmaker Nvidia Corp resulted in bearish rout in Wall Street. Asian share markets turned mixed on Friday as hopes for a thaw in the Sino-U.S. trade standoff were tempered over bearish cues from US equities. Asian shares had started firm after reports the United States might pause on further China tariffs but cues from US equity market following 17% plunge in Nvidia’s stock and UK’s political climate inspired cautious investor sentiment resulting in subdued performance across key Asian markets albeit with a bullish bias. MSCI’s broadest index of Asia-Pacific shares outside Japan is still up 0.3%, helped by gains in China.

The common currency is trading positive ahead of European market hours as demand for US Greenback is subdued following bearish rout in Wall Street last night. Hawkish Euro in broad market and positive cues from key Asian equities and indices are expected to provide positive boost to German equity market today. DAX futures trading positive in international market ahead of Frankfurt market opening up by 0.50% on the day. DAX index is expected to open positive and regain yesterday’s loss post which it is expected to trade flat near intra-day highs with bullish bias across the day.

 

 

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

Did you find this article useful?

Advertisement