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DAX Index Daily Price Forecast – DAX To Trade Rangebound on Concerns of Jobloss

By:
Colin First
Published: Mar 18, 2019, 10:14 UTC

DAX index likely to trade range bound on mixed cues influenced by headlines which has inspired cautious investor sentiment.

DAX Index Daily Price Forecast – DAX To Trade Rangebound on Concerns of Jobloss

European markets on Friday saw positive price action in both equities and forex marketscapes. The positive price action in European markets was influenced by hopes that the UK will be able to avoid a chaotic Brexit following Thursday’s UK parliament vote which ended with a decision to extend the deadline for Brexit. The market saw additional positive momentum on lingering influence from news of merger talks between top-level management of Deutsche bank & Commerzbank which boosted bank stocks in all major European stock exchange earlier last week.

Concerns of Job loss over Bank Merger Impact’s Investor Sentiment

There was also easing tensions from Sino-U.S. trade talks which underpinned risk appetite in the broad market and all these factors resulted in German equities closing on a positive note with DAX index scaling new 3-month high erasing all losses from early week. As per data from Frankfurt stock exchange, all three major German indices DAX, MDAX & TECDAX closed with 0.85%, 0.50% & 0.55% increase in value at end of trading session. Out of total 778 stocks trading in the exchange, 443 closed in green while 83 closed unchanged at end of trading session while 15 of 18 sectoral indices closed in Green. Stocks from technology, telecom, and insurance sector saw a high level of gains at the end of trading session.

The trading session started on a positive note in Asian markets on expectations for dovish Fed update later in the week and DAX futures trading in the international market were up by 0.06% ahead of European market opening. However, the weekend saw news update which suggested that a merger between Deutsche bank & Commerzbank would lead to loss of over 30000 jobs and this resulted in investor sentiment in European markets turning dovish ahead of market opening. There is also some level of caution ahead of EU’s vote in UK’s request for Brexit deadline extension and these factors suggest that German market is likely to have mixed price action today while DAX is likely to see rangebound price action with a bearish bias.

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About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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