DAX Index Forecast – DAX On a Strong Footing

The DAX index has continued to build on its inherent strength and with the trade war concerns being moved to the background, that has given the license for the investors and the traders to continue buying stocks and this has only helped the index to move higher in due course of time. The index now trades above the 12800 region as of this writing and there does not seem to be anything standing in the way in its journey towards the 13000 region.

DAX Bullish

One of the main reasons for the DAX to be under pressure over the last couple of weeks was the increasing tension and uncertainty over the trade war which started off between the US and China. Though it started with them, it began to slowly spread across the world and the Eurozone was no exception to this. Germany, being the main engine behind the Eurozone and also due to the fact that several of the auto makers are also in Germany, was likely to be the worst affected on the breakout of a full fledged trade war and thats why we saw the DAX suffering.

But over the last couple of days ,we saw that the trade talks between the leaders in the US and Eurozone have ended amicably which means that the threat and the uncertainty surrounding the trade war has been averted for now. This is likely to be helpful for the German economy in the long term and this is the major reason for the bull run that we are seeing in the DAX at this point of time and we expect the impact of that to continue for the short term.

Looking ahead to the rest of the day, the DAX is expected to be buoyant as it follows the example and the trend set by the Asian markets that have been moving higher in a strong manner today. We will also have to wait and see how the US markets open today but overall, the buoyancy is expected to continue as we head into the weekend.