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

European equities on Friday saw a sharp downside move on all major indices following dovish forward guidance from European Central Bank. While investor sentiment was already weighed down by a statement from ECB which hinted at their plans to resume Quantitative easing program by September 2019 and holding back from rate hike plans for 2019, caution ahead of US NFP data also limited activity in market and boosted dovish influence resulting in sharp downside price action of all major European indices and equities. Frankfurt stock exchange on Friday saw the majority of its benchmark indices close in red owing to prevalent dovish influence in the European market.

Increased Risk Appetite & Mixed Cues Likely To Influence Positive Bias

As per data from the exchange, all major benchmark indices aside from TECDAX closed in red on Friday however a look at the performance of equity stocks suggest that price action saw relatively mixed activity. Out of 778 stocks trading in Frankfurt stock exchange, 492 stocks closed in red while 86 closed unchanged at end of trading session. As per data on the performance of sectoral indices in the exchange, out of 18 sectoral indices, 12 indices closed in red at the end of the day. Shares from Basic Resources, Retail and Consumer & Cyclic sector saw high loss with more than 1.55% decline in each sector while stocks from Financial Services, Software and Food & Beverage sector saw significant gains up by more than 0.70% each as the trading session closed in European markets.

At EOD, the three most watched major indices from Frankfurt exchange DAX, MDAX & TECDAX saw -0.52%, -0.57% & 0.08% change in value. Asian market today saw mixed price activity but overall investor sentiment seems to have taken on a positive note. While Japanese and Singapore equities traded and closed in red on cues from Wall Street as weak employment data caused a spike in concerns over economic slowdown and limited gains, Chinese equities in Shanghai & Hong Kong exchanges saw positive price action on hopes for more policy support for slowing economy. DAX futures trading in the international market was down by 0.05% ahead of European market hours. However, mixed cues from Asian market and increased risk appetite amid weak USD is expected to influence positive bias in European equities price action and DAX index as trading session opens for the week.

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