DAX Index Price Forecast – DAX To Turn Soft on Bearish Market Sentiment Amid Dovish Macro Data

Germany equities were higher at the close on Wednesday, as gains in the Media, Pharmaceuticals & Healthcare and Food & Beverages sectors propelled shares higher. At the close in Frankfurt, the DAX gained 0.27%, while the MDAX index added 0.29%, and the TecDAX index gained 0.45%. Advancing stocks outnumbered falling ones by 389 to 307 and 82 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 0.61% to 14.46 a new 1-month low. Key equity markets across Europe are expected to see high level of activity today on busy macro calendar schedule and Brexit updates.  While markets closed positive yesterday, German market opened bearish and traded range bound in early hours as Gfk consumer climate data was worse than expected indicating bearish influence on market in near future.

Sino-U.S. Trade War Proceedings Put a Dent in Positive Momentum of German Equities

Asian stocks handed back earlier gains and fell on Thursday, with Chinese markets fixed firmly on risks from the China-U.S. trade war and taking little comfort from an apparent easing in business tensions in North America and Europe. Investors are relatively pessimistic and cautious for now amid low levels of trading volume, as there are still concerns over the development of the Sino-U.S. trade spat. Markets will finally see an eventful EU calendar today, with the German Prelim CPI release – the main event risk that will drop in at 1200 GMT. Ahead of the German inflation, the German jobs data is due at 0755 GMT. Key Asian markets such as China, Hong Kong & Singapore closed in red for the day providing bearish influence to European allies.

German DAX futures which traded in international market ahead of European market hours saw some positive movement in early hours of Asian market session, but turned bearish well ahead of European market session. This indicates possibility for a negative opening of German DAX or neutral opening with a range bound performance during today’s market hours. Aside from CPI, German markets will also see German Harmonised Index of Consumer Prices which is a measure of a joint basket of products for all Eurozone member countries which would also provide hints on consumer sentiment in market. French data released yesterday was neutral, however a better than expected outcome for Spanish and German data scheduled to release today would greatly help boost consumer sentiment and push index towards a positive close for the week. DAX is expected to open near flat or with a slide gap down move on bearish influence from Asian allies and softer EURO and trade range bound during today’s market hours.