DAX Index Daily Price Forecast – German Equities To Move With Bearish Bias Over Cues From International MarketMajor Asian indices lose over 1% as equity market saw pull back post most indices hitting one month high on rally inspired by US mid term election results.
Germany equities were lower at the close on Thursday, as losses in the Media, Food & Beverages and Technology sectors propelled shares lower. At the close in Frankfurt, the DAX declined 0.45%, while the MDAX index fell 0.36%, and the TecDAX index lost 0.61%. Advancing stocks outnumbered falling ones by 358 to 356 and 67 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 10.10% to 17.27. Major European and US equity markets saw bearish closing yesterday as US Greenback and US Treasury yields rose up following FOMC update which was in line with investor expectations. European markets suffered further bearish influence from political woes as Brexit talks fail to see any meaningful progress while Italian budget concerns continue to proceed in direction unfavorable for the common currency.
Asian Markets Turn Dovish Following Wall Street Cues
EURO is trading bearish in broad market today as bearish pressure from political owes and strong US Greenback in broad market continues to weigh down the pair significantly. Asian stocks pulled back from a one-month high on Friday as the Federal Reserve appeared poised to deliver another interest rate hike next month, paring gains made earlier this week after U.S. midterm elections triggered a global equities rally. The Fed held interest rates steady on Thursday but remained on track to continue gradually raising borrowing costs, pointing to healthy economic prospects that were marred only by a dip in the growth of business investment which resulted in Wall Street closing in red yesterday. Key Equity markets across Asia aside from Singapore saw significant downside move over cues from wall street with NIKKEI 225, SHANGHAI COMPOSITE & HANG SENG falling over 1% in Asian market hours.
Bearish Cues from international market is pressuring DAX futures trading in international market. Profit booking activity following a week long bull run and cues from wall street resulted in investor sentiment turning slightly dovish which is clearly visible in performance of DAX futures ahead of Frankfurt market opening as the futures in international market was down by 0.48% on the day. European equities are expected to trade in red today over cautious investor sentiment as key equity markets across the globe have turned bearish in last 12 hours. DAX index is expected to open near yesterday’s lows and maintain a flat pace across the day but there may be signs of bearish bias in price action depending on developments in European political climate.