DAX Index Price Forecast – German DAX Likely To Remain Range Bound Ahead of Eurozone CPI

Germany equities were higher at the close on Thursday, as gains in the Software, Transportation & Logistics and Technology sectors propelled shares higher. At the close in Frankfurt, the DAX rose 0.61%, while the MDAX index gained 0.88%, and the TecDAX index gained 1.59%. Advancing stocks outnumbered falling ones by 451 to 249 and 80 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 13.06% to 17.68. Proceedings on Sino-U.S meet for trade related talk has helped ease risk aversion sentiment to a great extent in last 24 hours with major global currencies picking up momentum amid sharp sell off activity surrounding US Greenback.

DAX To See Positive Headwinds From  Asian Market Ahead of EZ CPI

Asian shares won a modest reprieve on Friday after China and the United States agreed to hold their first trade talks since June next week and as the Turkish lira extended gains from its record low earlier this week. The euro, which had also been hit by fears of a spillover from Turkey’s financial crisis, was among the currencies to benefit from the news of trade talks which indicates European equities could also see positive headwinds in European market hours today. Considering that European banks’ exposure to Turkey is relatively limited, this week’s reaction by the euro looked overdone. But the rise in Italian bond yields amid the country’s fiscal concerns may continue indefinitely and limit the bounce by the euro indicating this week’s close could see dovish influence linger among investors despite an overall positive market sentiment on last day of the week.

Major Asian and US indices closed positive today except for Chinese market which saw mixed movement with Hong Kong’s Hang Seng closing green while Chinese Shanghai Composite closing in red. European markets are expected to see positive influence from global investors as trading session opens for the week, bu German DAX futures trading in international market was down nearly 0.16% ahead of European market hours indicating possibility of side ways movement of DAX index in today’s market hours. German DAX is likely to see positive opening and trade near flat price action in early European markets hours ahead of Eurozone CPI update post which the index could move either side depending on macro data outcome and investor sentiment. The DAX at close for the day is expected to remain within a 0.50% change despite whichever direction the index may move.