DAX Index Price Forecast – DAX to Move Range Bound on Cautious Investors Stance Surrounding Equity Market

Germany equities were mixed at the close on Wednesday, as gains in the Utilities, Telecoms and Industrials sectors propelled shares higher while losses in the Technology, Retail and Food & Beverages sectors led shares lower. At the close in Frankfurt, the DAX gained 0.09%, while the MDAX index added 0.32%, and the TecDAX index fell 0.11%. Declining stocks outnumbered rising ones by 344 to 340 and 90 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 0.17% to 13.84. A rally in U.S. equities fizzled out late on Wednesday, while the U.S. dollar rose, after the Federal Reserve raised interest rates, as expected, and flagged the end of its “accommodative” monetary policy. Meanwhile European equities yesterday closed on positive note supported by hawkish Euro and healthy risk appetite in market on Wednesday.

Treasury Yield Falls Providing Positive Influence To Equity Market

Asian shares held firm on Thursday, outperforming sagging Wall Street shares, and U.S. bond yields fell after the Federal Reserve raised interest rates as expected sticking to its script of gradual policy tightening. Japan’s Nikkei briefly touched an eight-month high as automakers rose after the United States indicated it would not impose further tariffs on Japanese automotive products for now, though it was down 0.1 percent at midday in choppy trade. The 10-year U.S. Treasuries yield fell more than 5 basis points to 3.048% as market participants had braced for a more hawkish stance. The fall in Treasury yields was good news for Asia and other emerging markets, which had been pressured by concerns that higher U.S. yields would encourage investors to move funds out of emerging markets to the United States, on top of worries over the Sino-U.S. trade feud.

However as market came to close in Japan – NIKKEI225, Hong Kong’s HANG SENG and Chinese SHANGHAI COMPOSITE turned dovish while Singapore’s FTSE STI continues to move positive. This indicates that investor sentiment is relatively on cautious note today. German DAX Futures trading in international market ahead of European market hours was mildly positive in early Asian hours but turned dovish when Asian indices took a bearish turn indicating possibility for range bound performance in German stock market today.