DAX Index Daily Price Forecast – DAX To Trade Positive On Broad Based Risk Appetite

Headlines from China Continues to inspire market price action in trade dependent German market, dax is expected to trade positive on high risk appetite in market.
Colin First
DAX Tuesday

Major equity markets across Europe closed in red yesterday on risk averse trading activity following dovish cues in Asian markets on disappointing import and export data in China. German markets which is highly trade dependent owing to industrial nature of economy usually suffers from any major changes in allied market. With trade activity from US & China playing a great part in German trading activity, ongoing trade wars already took a heavy toll on economic growth in Germany and other major European economies. While recent positive progress in trade talks helped German equities move on bullish rally, yesterday’s disappointing import and export trade data from China and dovish cues from Wall Street pressured German equities into dovish price action.

Headlines From China Continues To Influence Market Price Action

All three major indices in Germany suffered losses yesterday with DAX, MDAX & TECDAX down by 0.29%, 0.43% & 1.55% on the day at close in European markets. Out of total 778 stocks listed in Frankfurt stock exchange 435 stocks declines during yesterday’s trading hours and any chance of recovery was further limited owing to caution in European markets ahead of Key Brexit vote scheduled in UK parliament today. Software and retail sectors stocks suffered most losses yesterday.  While risk appetite is relatively limited ahead of today’s Brexit vote, major risk assets traded positive in Asian hours. The positive price action in forex and equity markets were further boosted on headlines from China which stated that government is taking steps to ensure positive progress in Chinese economic growth during first quarter in a bid to recovery from losses incurred in ongoing Sino-U.S. trade wars.

All major Asian indices closed with more than 1% increase in value which suggests significant risk appetite in market even if investors are cautious about Brexit proceedings. Markets have already priced in possible rejection in Brexit deal and so the price action is expected to remain positive on cues from Asian markets across today’s trading session. Ahead of European market hours, Dax futures trading in international market was trading up by 0.65% on the day. DAX index is expected to trade positive across today’s market hours supported by broad based risk appetite and cues from Asian market.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.