DAX Index Daily Price Forecast – DAX To Trade Positive Over Latest Developments in Political ScenarioDax to move positive supported by cues from Asian market and German political headlines.
Germany equities were higher at the close on Monday, as gains in the Technology, Media and Food & Beverages sectors propelled shares higher. At the close in Frankfurt, the DAX added 1.25%, while the MDAX index climbed 1.33%, and the TecDAX index climbed 2.17%. Advancing stocks outnumbered falling ones by 527 to 176 and 25 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 12.38% to 23.79 a new 6-month high. German market remains trapped under political uncertainties and continues to face bearish pressure as Merkel’s party lost another regional election, jeopardizing her leadership.
Equity Markets Likely To Continue Downtrend Movement Despite Positive Momentum Today
However news of Merkel stepping down as Chancellor helped improve investor sentiment resulting in positive equity market closing. Asian shares came under pressure today morning after Wall Street peers finished weaker, hurt by fresh worries about the U.S.-China trade war and were on track for their biggest October decline since the 2008 financial crisis. At this point, nobody can say the equity market is bottoming out. Global investor sentiment remains shaky, but the probability of global stocks turning to a bear market is increasing owing to slowdown in global economic growth and developments in geo-political and economical trade wars.
While some investors who look at fundamentals buy stocks on dips, there are other players who keep selling automatically in response to heightened volatility. But equity market could easily be overwhelmed by negative headlines and tariffs. German market is expected to trade positive today owing to latest development in political scenario. This is expected to get further support from EZ GDP, German CPI & Unemployment data. Since majority of Asian indices were trading positive in early European market hours and DAX futures trading in international market was trading positive with 0.61% gains ahead of European market hours, DAX index is expected to open positive and move positive across the day.