DAX Index Daily Price Forecast – DAX To Trade Dovish On Cues From Asian Counterpart

Germany equities were mixed at the close on Friday, as gains in the Consumer & Cyclical, Food & Beverages and Construction sectors propelled shares higher while losses in the Pharmaceuticals & Healthcare, Transportation & Logistics and Media sectors led shares lower. At the close in Frankfurt, the DAX lost 0.21% to hit a new 52-week low, while the MDAX index climbed 0.39%, and the TecDAX index added 0.45%. Advancing stocks outnumbered falling ones by 403 to 307 and 67 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 7.86% to 22.38. Equity markets traded positive on Friday across European markets but dovish outcome in German Industrial production data and influence from bearish outcome in Euro Zone Q3 GDP resulted in German equity markets suffering bearish price action on last trading session of the week.

Fears of Global Economic Slowdown Influences Bearish Price Action in Equity Markets

Global stocks extended their slump on Monday, with U.S. equity futures and Asian shares sliding on worries over slowing growth and fears that a fresh flare-up in tensions between Washington and Beijing could quash chances of a trade deal. Meanwhile investor sentiment took a serious hit as trading session began for the week owing to weaker than expected macro data reports from major global economies such as U.S.A, China and Japan which is believed by many investors to be signs of slowdown in global economic growth. Investors are also waiting for UK Parliament’s decision on PM May’s Brexit deal that could affect political and economic climate in Euro zone area significantly.

However the US Greenback is on back foot since late Friday influenced by U.S. jobs data and increasing market fears on Sino-U.S. trade war escalation which combined with worries of economic growth hitting its peak in U. S. and Federal Reserve’s increased likelihood to put a pause on rate hike by the December influenced by recent curve inversion in US treasury yields boosted major global currencies which along with decreased exchange rate makes it possible for investors from emerging markets to participate in global trade actively boosting Asian and European equities to some extent. DAX futures trading in international market ahead of European market hours is down by 0.54% on the day despite the common currency trading positive in broad market. DAX index is likely to open bearish and trade in red across the day over cues from international market but downside is expected to remain low.