DAX Index Daily Price Forecast – DAX To Trade With Positive Bias Supported By Cues From International Market

Germany equities were higher at the close on Friday, as gains in the Food & Beverages, Transportation & Logistics and Media sectors propelled shares higher. At the close in Frankfurt, the DAX gained 0.49%, while the MDAX index gained 0.51%, and the TecDAX index gained 1.33%. Advancing stocks outnumbered falling ones by 436 to 265 and 75 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 0.15% to 19.80. European equities closed positive for the week amid positive investor sentiment and increased risk appetite amid a holiday thin market. Asian shares were on a slippery slope during early Asian market hours on Monday as plunging oil prices fanned worries about a dimming outlook for the global economy while investors brace for a crucial meeting between U.S. and Chinese leaders at the end of week.

Signs on Economic Slowdown in German & Europe Could Weigh on German Equities Today

However Asian stocks and US equity futures picked up momentum in ahead of European market hours on hopes of solid U.S. holiday sales despite upside move being capped owing to factors mentioned above. Shoppers across the United States snapped up deep discounts on toys, clothing and electronics both online and at stores on Black Friday, giving retailers a strong start to their make-or-break holiday season. However stock markets had another tough session on Friday, when the benchmark S&P 500 hit its lowest close in more than six months as the energy sector took a beating in the wake of the oil slump down by nearly 10% from its record high closing on Sept 20 and this is second time this year for S&P 500 which previously saw 10% correction during rout in early February.

Oil prices are fragile, keeping near their lowest levels since October last year, having dived 8 percent on Friday for the biggest weekly losses in almost three years as rising U.S. production intensified fears of a supply glut. Worries from crude oil price action and global economic slowdown has significantly affected investor sentiment surrounding equity market and is expected to limit any major upside move this week. DAX futures trading in international market ahead of European market hours were up by 0.50% on the day following boost to equity market in later half of Asian market hours. However Frankfurt is expected to see subdued price action today as market could see influence of weak German macro data released last week but positive investor sentiment prevalent today morning should also provide support to bulls  which suggests range bound price action with positive bias for DAX and German equities.