DAX Index Under Pressure As Risks Increase

The DAX index did not make much of a progress yesterday as the risks and tthe uncertainties continued to escalate in the market and that is not good for the traders to make their trading decisions. Hence it is likely that they are either adopting a wait and watch attitude or they are going ahead and selling off their holdings in anticipation of further risks in the horizon.

DAX Under Pressure

The index has made a move towards the highs of its new range on the back of hope that the ECB would be forced to delay the end of the QE. This has gained credence over the last few days as the incoming data from the Eurozone has not been upto expectations over the last few weeks and the highs in the data that were seen towards the end of the last year are not seen anymore. This should put the ECB on the backfoot as far as tapering and ending of the QE is concerned and that has been fueling the move higher.

But yesterday, the geopolitical risks took over the market headlines as the conflict in Syria is set to escalate with the participation of many countries on either side. This could escalate further in the coming days and that is why we are seeing the market all around the world either static or under a lot of pressure during this period. We expect this to only get worse and hence we would not be surprised if the DAX begins to move even lower.

Looking ahead to the rest of the day, we believe that the focus of the investors and the markets would be on the developments in Syria and this would mean that the DAX would continue to be under pressure. Traders would be served well by staying on the sidelines for now and seeing how the situation develops.