DAX Index Daily Price Forecast – DAX To Trade Rangebound On Escalating Political Tensions

European equities on Friday saw a solid bullish performance in all major markets across Europe. All major indices, key stocks and futures contracts traded with and closed on a positive note as hawkish influence surrounded equity markets owing to upbeat economic data release from the German and Euro area economic calendar. Also, investors hopes for the delay in Brexit deadline despite the lawmakers failing to make any key changes on proceedings related to Brexit during the most recent UK parliament session added strength to market bulls. Headlines also suggested that despite conflicting comments from US officials, the USA is likely to go ahead and delay the deadline for imposing tariffs on Chinese goods in hopes of securing a trade deal between the two nations as early as possible. The optimism surrounding trade talks and hawkish influence flooding from various directions helped the German equity market close on a positive note last Friday.

Sino-U.S. Trade Optimism Likely To Offset Dovish Influence From Political Tensions

As per data from the Frankfurt stock exchange, all major benchmark indices, equities and even sectoral indices closed with positive activity on Friday. Out of a total 778 stocks trading in the exchange, 477 stocks closed in green while 68 closed unchanged at end of trading session. As per data on the performance of sectoral indices from the Frankfurt stock exchange, all 18 sectoral indices closed positive on Friday as the trading session came to close for the week. As per data from the exchange, stocks from basic resources, food and beverage, and technology sectors saw most gains with more than 1.70% increase in value each. All three most watched indices from Frankfurt stock exchange DAX, , MDAX and TECDAX closed positive on Friday with 0.75%, 1.12% and 1.37% increase in value at end of trading session respectively. Asian equity market on Monday opened on a positive note and all major equities and indices saw positive price action as optimism surrounding trade talks between China & U.S. boosted risk appetite and underpinned market bulls since the trading session began for the day.

The USA decided to keep existing tariffs at 10% instead of rising it to 25% and also stated that no new tariffs will be levied without advanced notice and this was viewed as a positive factor by traders and analysts alike as investors across the globe hoped for speedy resolution of investors between the two nations. A trade deal between the two parties is expected to put the market back on track to resume 2017’s sharp, fast, positive price rally. Equities and indices are likely to see positive price action over hawkish cues from Wall Street and Asain markets but the German equity market is likely to see mixed price activity. Headlines suggest that German Chancellor Angela Merkel and her SPD party is preparing to strip IS (Islamic State) fighters of their right to German citizenship. Meanwhile, Orban affair also seems to be escalating to new heights causing a high level of political tensions in the German market. This was also visible in the performance of DAX futures in the international market. DAX futures opened positive for the week and were up by 0.23% in early Asian market hours but saw dovish dive and went as low as 0.63% ahead of the Frankfurt market opening. This suggests that while DAX may open positive on cues from the international market and Sino-U.S. trade optimism is likely to influence positive price action, political tensions are likely to put pressure on bulls resulting in range bound action for DAX index during today’s German market hours.

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