DAX Index Daily Price Forecast – DAX To Move Range Bound Over Dovish Cues From Global Markets

Germany equities were lower at the close on Monday, as losses in the Software, Technology and Retail sectors propelled shares lower. At the close in Frankfurt, the DAX lost 1.36% to hit a new 6-month low, while the MDAX index fell 1.64%, and the TecDAX index lost 3.61%. Declining stocks outnumbered rising ones by 544 to 176 and 59 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was unchanged 0.00% to 16.85. European equities collapsed to multi-month lows on Monday, with banking-related equities leading the slump, as Italian government bond yields surged to over 4-year highs, with Italian Salvini pointing a finger on Brussels for the bonds’ sell-off.

Italian Budget Plans Continue To Weigh Down European Equities

News of US Brexit Secretary Raab cancelling his visit to Brussels scheduled for this week also weighed down German Equities. Asian shares hit 17-month lows on Tuesday as China allowed its currency to slip past a psychological bulwark amid sharp losses in domestic share markets, a shift that pressured other emerging currencies to depreciate to stay competitive. The IMF added to the malaise by cutting forecasts of global growth for both this year and next, including downgrades to the outlook for the United States, China and Europe. Sentiment is in a foul mood and stocks are sinking everywhere. Italy’s borrowing costs have surged as a war of words between Rome and the European Union over the country’s budget plans escalated.

Italian government 10-year bond yield rose more than 20 basis points to 3.626%, the highest since February 2014, while Italy’s FTSE stock index fell to its weakest since April 2017. Major indices across key Asian markets have taken a bearish stance today, meanwhile US equities also closed on bearish note resulting in a dovish sentiment surrounding European equity market ahead of London market hours. However DAX futures trading in international market is currently moving positive up 0.19% on the day despite moving dovish in early Asian market hours seeing over 0.18% decline in value. DAX index is expected to open downtrend but move range bound during today’s market hours.