DAX Index Daily Price Forecast – DAX To Move Upwards Supported By Hawkish EURO in Broad Market

Germany equities were mixed at the close on Tuesday, as gains in the Transportation & Logistics, Financial Services and Media sectors propelled shares higher while losses in the Retail, Food & Beverages and Utilities sectors led shares lower. At the close in Frankfurt, the DAX declined 0.09%, while the MDAX index lost 0.19%, and the TecDAX index climbed 0.33%. Declining stocks outnumbered rising ones by 360 to 335 and 85 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 0.36% to 19.62. European markets closed in red yesterday as investors were on cautious mood while awaiting for US election results.

Cautious Investor Sentiment Surrounding US Election Results Likely To Cap DAX’s Upside Move

Asian shares dropped on early Asian market hours as early results of the U.S. midterm elections started to trickle in, with investors bracing for the Republicans to lose their grip on Congress. Investors expectations of split congress put high level of bearish pressure on equity and forex markets which was further affected by US election results trickling in. Voter turnout in national elections, normally lower when the presidency is not at stake, could be the highest for a midterm election in 50 years as opposition Democrats are favored by election forecasters to pick up the 23 seats they need to gain a majority in the House, but have slimmer chances of gaining control of the Senate, as per opinion polls taken ahead of announcement of actual results.

All major Asian market such as Tokyo, Shanghai, Shanghai and Singapore are trading in red with investors sentiment in equity market looking highly dovish as election results in US seems to be negative for US Greenback. However positive momentum of the shared currency against US Greenback is expected to keep European equity markets supported during today’s trading hours. DAX futures trading in international market was positive ahead of Frankfurt market opening with over 0.20% increase in value despite negative tone surrounding Asian equities. DAX is expected to open positive and trade range bound with bullish bias during today’s market hours. However there is also chance for DAX to turn bearish over cues from Asian equities.