DAX Index Forecast – DAX Recovers Through the Day

The DAX index started the first day of the week yesterday on the backfoot as the pressure from the geopolitical developments over the weekend seemed to have an impact on the index and the stock markets around the world were also feeling jittery. This led the index to begin the day lower but it managed to recover during the course of the day and finished the day almost at the same place where it all began.

Geopolitics Impact the DAX

The political sphere in Germany was rocked by confusion and uncertainty with the minister in the cabinet threatening to resign and this has brought into question, the stability of the Merkel government. All hell could break loose if the government falls but so far, there have not been many signs of the same and that is why we saw the index recover through the course of the day. Also, the Asian stock markets were also a bit jittery owing to the follow up on the trade war.

The trade war between the various countries only seems to be getting intensified more and more on a daily basis and this is clearly affecting the markets around the world. This also weighed on the DAX index through the day but all this reversed once the US stock markets opened which also closed green at the end of the day. This is likely to keep the DAX index in good stead for the day today.

We could expect a strong opening in the DAX for the day and this is likely to keep the index buoyant for the rest of the day as long as the domestic politics in Germany does not interfere with the workings of the market and lead it lower in due course of time. The traders would be eager to see how far the recovery carries through.