DAX Index Price Forecast – DAX Moves Higher on Trade Talks

The DAX index got a boost late in the day yesterday which helped it to climb above the 12700 region to close the day. This was in contrast to the way the day had begun for the index as it came under pressure during the first half of the day on growing fears and uncertainty over the trade talks that were scheduled to be held later in the day yesterday between the leaders of the US and the Eurozone as well.

Trade Talks Ease Tension

These trade talks were scheduled on the background of the growing tensions and the spread of the trade war between the various countries with the US being involved in all of them. There was a growing worry that the talks could end up in a lockjam with the US going ahead with the tariffs on the goods from the Eurozone and the Eurozone retaliating in kind and this would have affected the auto industry in the zone to a great extent. With Germany being the chief driver of the zone, it was expected to suffer the most on such an eventuality.

Thankfully, this was averted during the talks as the question of tariffs was delayed to a later date on both sides and this gave a boost to the auto stocks in the DAX which helped it to climb higher to close the day on a strong note. This should help the index to continue its bullish run in the short term as the tariffs and the trade war was one of the fundamental factors that was weighing in on the index over the last few days.

With this removed, we should see soe bullishness in the DAX for the short term as the impact of the trade talks and its positivity begins to rub off on the index during this period. We should see the index carry through towards the 12800 region in due course of time which should then give the opportunity for the bears to come back into the markets and see whether they would be able to take control of the index once again.