DAX Index Fundamental Analysis – week of December 11, 2017

The DAX index continued to trade within a range and we could see that the index has been trading within almost the same range for 4 weeks now. There are not yet any clear developments on the Brexit process and also the coalition talks in Germany and with us approaching the end of the year, there isnt much to drive the index.

DAX Chops Around

This was the same case last week as well as the index was content to chop around the 13000 region for most of the week and ended the week above the 1300 region, not that it means much anyway, at this point of time. There were reports and counter reports on how the Brexit talks have been progressing with some saying that we are close to a deal being announced and others saying that there is still some important matters that need sorting out.

All these news and developments have been weighing on the DAX and this has ensured that it did not break out of the range over the last week as well. The risk sentiment around the globe has been generally positive and this has helped to keep the index strong despite the pressure from events within Europe. It remains to be seen whether we will have some solid developments from the Brexit process in the coming week atleast so that it would aid a breakout.

Looking ahead to the coming week, we have a speech from Draghi and we also have the ECB press conference as well. We also have the economic sentiment and the CPI data from Germany apart from a host of news from the US as well, all of which ensures that it is going to be a jam packed calendar in the coming week as we head towards the end of the year.