DAX Index Price Forecast – DAX to Open Positive on Increased Risk Appetite amid Mixed Global Cues

Germany equities were lower at the close on Wednesday, as losses in the Technology, Pharmaceuticals & Healthcare and Chemicals sectors propelled shares lower. At the close in Frankfurt, the DAX lost 1.58% to hit a new 3-month low, while the MDAX index fell 1.47%, and the TecDAX index declined 2.42%. Declining stocks outnumbered rising ones by 581 to 139 and 60 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 12.54% to 20.34 a new 3-month high. Turkish Crisis which greatly influenced European market in early half of the week is losing steam and risk appetite has returned across global market. While market closed yesterday on dovish note, today’s market scenario looks highly positive.

Weak USD & Waning Impact From Turkish Crisis To Provide Boost To DAX’s Momentum

Asian shares pulled away from one-year lows on Thursday, after Beijing said it will hold trade talks with Washington this month, albeit Turkey’s currency crisis and fears of an economic slowdown in China kept some markets in the red. China on Thursday said a delegation led by its vice commerce minister would travel to the United States for talks in late August at the invitation of Washington. This news has brought back risk appetite to global market and triggered a US Greenback sell off in broad market. While US Greenback’s market sentiment remains positive in long term supported by positive macro data release, increased risk appetite has caused investors to flock to major global currencies which in-turn has resulted in equity markets gaining positive influence.

Major indices across globe markets such as Singapore, China, US & India are in red in early Asian market hours. However major global currencies are trading positive and EURO is up 0.22% on the day and has remained green across Asian market hours and this suggests positive influence for equity markets across Europe. This along with weaker USD & waning impact from Turkish crisis are expected to provide positive momentum to today’s market.  German DAX futures in international market are trading positive up 0.39% ahead of European market session. This supports possibility of bullish market movement in early European market hours, however dovish cues from Asian equity market could hold back DAX’s uptrend movement. DAX is expected to trade naer flat or slightly positive near monthly lows with positive opening for the day.