DAX Index Daily Price Forecast – DAX to Trade in Green on Positive Cues From International Market

Equities in European market saw mixed outcome in major stock exchanges yesterday. Equities opened across Europe with positive bias and increased risk appetite influenced by headlines of two-day trade talks between Chinese and U.S. delegates in China. However, declining German bond yields continued to provide dovish influence capping gains. Later in the day, European macro data saw worse than expected outcome, which caused further risk-averse sentiment resulting European market losing most of its positive influence from the early trading session. At the end of European market hours, most major stock exchanges in Europe saw mixed action in their equities and benchmark indices.

Macro Data Outcome Eyed For Directional Bias

German market also saw mixed activity in Frankfurt stock exchange which at close saw most major benchmark indices and equities close in the red. Out of 6 major benchmark indices, 4 closed in the red with MDAX & TECDAX down by 0.66% & 0.49% on the day while DAX index closed with 0.08% increase in value at end of the day. Out of the total 778 stocks trading inFrankfurt stock exchange, 349 stocks closed in red while 346 stocks closed in green and 85 stocks closed unchanged at the end of the day. As per data on the performance of sectoral indices from the exchange, 13 out of 18 sectoral indices closed in the red. Stocks from Chemicals, Pharma & healthcare, Software sectors saw high gains while stocks from Banks, Construction and Technology sectors saw a high loss.

Asian market today saw positive price action across all major stock exchanges supported by cues from Wall Street and increased risk appetite stemming from Sino-U.S. trade talk related optimism. Also, the bond market is seeing all major government bond yields recover across the globe after nearly four consecutive sessions of decline supporting increased risk appetite and positive price action in the global market. The German equity market is highly influenced by cues from international markets owing to its trade-dependent economy. DAX futures trading in the international market was up by 0.25% ahead of European market opening. This suggests that the DAX index and German equities are likely to see positive price action across today’s European market hours. While DAX may trade positive the level of gains will depend on macro data outcome in EU and UK parliament decision on Brexit progress.

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