The DAX index closed the week close to its range highs as the index found some strong support due to the way that the global indices have been moving over the last few days. The stock markets have been driven by the global factors and not much by any domestic factors as such. Except for the uncertainty over the QE and its tapering, there has not been much going on in the markets over the last few weeks and hence the index has been driven by international factors.
DAX Index Buoyed
Last week, we saw the index being rocked by the talk about the QE and its tapering and whether the economy of the Eurozone was strong enough to sustain the tapering and ending of the QE. The ECB did not commit to either side and this left many of the traders and the investors uncertain on the timeline for the same. This led to some unwinding of the euro positions which has since helped the DAX to move higher.
We are also seeing a situation where there has been an improvement in the risk sentiment over the last couple of days which has been brought about by the seemingly strong bonhomie between North and South Korea which augurs well for the future of that region. This is likely to keep the risk sentiment higher which should keep the stock markets buoyant over the next few days.
Looking ahead to the rest of the day, we can safely expect the DAX to continue to trade in a strong manner carrying over from the way that the Asian stock markets have been trading. But the index is already near its range highs and it would be interesting to see if the index manages to break through the highs of the range during this week as the momentum is there for everyone to see.