DAX Index Daily Price Forecast – DAX To Trade Range Bound On Mixed Cues

Mixed cues influenced by geopolitical headlines and investor sentiment taking a dovish hit in broad market is likely to inspire range bound action.
Colin First

European markets on Friday saw sharp declines on all its major indices and stocks owing to the high level of bearish sentiment in the broad market. Disappointing macro data outcome from Germany and the European central bank’s reduction of growth forecast for 2019 revived concerns of a slowdown in European economic activity. This caused German 10-year government bond yields to decline and led to a widening of spread difference between major global counterparts such as Italian and American 10-year government bond yields leading to market fundamentals taking a dovish turn and influencing bearish investor sentiment.

Dovish Momentum From Friday Is Likely To Inspire  Dovish Price Action

This caused both EURO and major stocks/indices in all European markets to take a bearish nosedive during Friday’s market hours. German equity market on Friday closed with a sharp decline owing to prevalent risk-averse trading activity. Out of total 778 stocks trading in the exchange, 513 stocks closed in red while 84 closed unchanged at end of trading session. As per data on the performance of sectoral indices from Frankfurt stock exchange, stocks from Automobile, basic resources, and technology sector saw most declines with all sectoral indices closing in red for the week. All three major indices from Frankfurt exchange closed in red with DAX, MDAX & TECDAX down by 1.05%, 1.21% & 2.07% on the day.

Asian markets today opened on a dovish note with all major indices and stock trading in red on dovish cues from US Wall Street. Further, weekend headlines from the US indicated that Sino-U.S. trade talks are set to resume later this week, which caused tensions surrounding trade talks to remain high as the deadline is nearing by with no signs of a trade deal between the two nations. Given investors concerns of an economic slowdown in the Euro area and declining Treasury Yields, the European market is likely to see dovish investor sentiment. However, DAX futures trading in the international market were positive ahead of the European market opening. Mixed cues from the international market suggest DAX is likely to trade range bound during today’s market hours with directional cues likely to be inspired by headlines driven momentum.

Please let us know what you think in the comments below

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.