DAX Index Daily Price Forecast – DAX To Trade Range Bound On Cautious Investors Tone Ahead of G20 Summit

Germany equities were mixed at the close on Thursday, as gains in the Basic Resources, Technology and Transportation & Logistics sectors propelled shares higher while losses in the Food & Beverages, Utilities and Insurance sectors led shares lower. At the close in Frankfurt, the DAX lost 0.01%, while the MDAX index gained 0.92%, and the TecDAX index gained 1.48%. Advancing stocks outnumbered falling ones by 434 to 269 and 79 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 1.39% to 19.71. German equities yesterday closed flat as mixed outcome in macro data pushed investors to maintain cautious stance ahead of G20 summit that is scheduled to begin today.

Macro Data Update to Provide Opportunities For Short Term Gains

Asian shares wavered on Friday as investors were on edge before a crucial weekend meeting between the Chinese and U.S. presidents that could determine the course of a heated trade war over the next year. Investor attention is now squarely focused on planned talks between Chinese President Xi Jinping and his U.S. counterpart over the weekend on the sidelines of a G20 summit in Argentina. Adding to apprehension ahead of the Trump-Xi meeting were comments from a U.S. official, who said White House trade adviser Peter Navarro, who has advocated a tougher trade stance with China, would attend. Mixed signals from Washington about the prospects for a rapprochement with China on trade are expected to keep investors on edge across today’s trading sessions.

Today’s market will see relatively neutral price action with little volatility driven by high impact news providing short term opportunities but investors are expected to hold off placing any long term/huge bets until Monday as they await update on trade negotiations. Dax futures trading in international market ahead of European market hours was up by 0.07% with neutral price action for majority of Asian price action. DAX index is expected to open neutral and maintain range bound price action as investors maintain caution ahead of G20 & trade talk related headlines but there is opportunity for short term profits owing to news based volatility driven by German retail sales data and Eurozone CPI data release during European market hours.