DAX Index Daily Price Forecast – Mixed Cues From Asian Market And Brexit Woes To Influence DAX’s Activity Today

European equities yesterday saw mixed price action in all major European stock exchanges. The European market is highly dependent on trade activities (import/export) owing to the industrial nature of its economy and as a result, is highly influenced by cues from allied international markets. US Wall Street equities had been trading dovish since trading session resumed for the week contrary to the performance of US Dollar in the broad market which remains strong supported by strong fundamentals. Further, the Chinese parliament meeting yesterday downgraded 2019 growth target. However, optimism surrounding Sino-U.S. trade talk helped inspire some level of risk appetite in global equity markets preventing sharp losses in European equities.

Brexit Talks Proceed In Unfavorable Direction

Frankfurt stock exchange yesterday saw mixed price action for the second consecutive trading session this week. While positive German & Euro area PMI’s and Euro area retail sales data provided some level of bullish influence to market, investor sentiment was tainted with dovish cues from the international market resulting in mixed price action during yesterday’s trading session. Out of a total 778 stocks trading in the exchange, 361 stocks closed in green while 81 closed unchanged at end of trading session. As per data on the performance of sectoral indices from the Frankfurt stock exchange, 11 out of 18 sectoral indices closed on a positive note yesterday with stocks from basic resources, software, retail and telecom sectors seeing high gains up by more than 0.60% on the day while stocks from Bank, automobile and industrial sectors suffering significant loss down by more than 0.40% on the day.

At end of the trading session in Frankfurt stock exchange, DAX had managed to scale new 3-month high once again and was up by 0.24% while two other most-watched indices MDAX & TECDAX closed with -0.01% & 0.45% change in value. Asian shared today saw mixed price action on Wall Street cues and expectations for further headlines with details pertaining to Sino-U.S. trade talks. Also, investors are focusing on EU-UK Brexit talks taking place today and the outcome is likely to have great impact on price action of DAX regardless of how trading session opens for the day. DAX futures trading in the international market was down by 0.16% on the day ahead of European market hours which along with mixed cues from the Asian market and dovish cues from Wall Street are expected to influence dovish opening and range bound action with dovish bias in DAX index during today’s trading session.

Please let us know what you think in the comments below.