DAX Index Daily Price Forecast – DAX to Trade Positive on Increased Risk Appetite

Dax is expected to trade positive on cues from wall street and Asian markets.
Colin First
DAX Thursday
DAX Thursday

German markets were closed for Christmas celebrations since Monday and trading session is set to resume today. On Friday Germany equities were mixed at the close as gains in the Retail, Transportation & Logistics and Chemicals sectors propelled shares higher while losses in the Software, Telecoms and Food & Beverages sectors led shares lower. At the close in Frankfurt, the DAX rose 0.21%, while the MDAX index gained 0.38%, and the TecDAX index lost 0.07%. Declining stocks outnumbered rising ones by 405 to 316 and 58 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 2.20% to 20.91. European markets continue to suffer from political and economic woes on multiple fronts as 2018 comes to close.

Wall Street Rally Has Boosted Investors Risk Appetite

Italian budget woes, French Protests and Brexit Proceedings are three main issues that have greater influence on price action in European markets but year end holiday season seems to have put a pause on proceedings of above mentioned events creating lack of high impact headlines which eases bearish pressure on markets. Meanwhile, US Wall Street indices staged a recovery rally as MasterCard Inc reported that sales during the U.S. holiday shopping season was the highest in last six years in 2018. US markets were further supported by spike in US Treasury Yields following its recent declines which also supported positive performance in Wall Street last night.

Positive influence from Wall Street’s overnight performance boosted investors risk appetite and helped Asian indices trade positive with significant gains. German markets are highly susceptible to performance in US markets. This combined with positive cues from allied market and increased risk appetite is expected to influence positive price action in German equity markets during today’s market hours. DAX further trading in international market was up by 1.37% ahead of Frankfurt market opening which also hints as positive performance of German stock market. Despite holiday thin trading volume limiting any possibility of sharp upward price actions DAX index is expected to open with a gap up move and maintain bullish price action across today’s European market hours.

 

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