DAX Index Price Forecast – FWB To Open Positive on Positive Investor Sentiment in European Markets

Germany equities were mixed at the close on Thursday, as gains in the Food & Beverages, Technology and Chemicals sectors propelled shares higher while losses in the Retail, Financial Services and Software sectors led shares lower. At the close in Frankfurt, the DAX rose 0.19%, while the MDAX index lost 0.60%, and the TecDAX index fell 0.80%. Declining stocks outnumbered rising ones by 361 to 316 and 102 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 5.66% to 15.44. With weak USD in broad market following news of trade talk between China & US and disappointing US inflation data risk appetite has returned to market and equity markets across globe have taken positive movement.

Healthy Risk Appetite Prevalent in Market But High Level of Upside Momentum is Unlikely Owing to Trump’s Tweet

Shares across most of Asia rose on Friday on expectations that the United States and China could launch a fresh round of trade talks, and a surprisingly sharp interest rate hike in crisis-hit Turkey supported the lira and global risk appetite. News of a possible new round of talks between Washington and Beijing comes even as the trade war between the world’s two largest economies looks set to escalate. Chinese officials welcomed an invitation from Treasury Secretary Steven Mnuchin for new talks. But U.S. President Donald Trump tempered market expectations, tweeting on Thursday that the U.S. is “under no pressure to make a deal with China”.

All major markets in Asia such as China, Japan & Singapore are experiencing positive momentum as visible from performance of respective market’s benchmark indices. European markets are expected to open positive supported by strong sentiment surrounding EURO in forex market and news of rate hike in turkey which are expected to boost risk appetite sentiment in local market.  DAX futures which are trading in international market ahead of London market hours are up 0.22% on the day indicating possibility for positive opening in Frankfurt stock exchange. DAX is expected to trade positive across today’s market session supported by positive cues from both local and international allied markets.