DAX Index Price Forecast – German DAX Opens on Positive Note Underpinned by Bullish influence from Global Equities

Germany equities were higher at the close on Friday, as gains in the Media, Basic Resources and Technology sectors propelled shares higher. At the close in Frankfurt, the DAX rose 0.23%, while the MDAX index gained 0.20%, and the TecDAX index gained 0.68%. Advancing stocks outnumbered falling ones by 401 to 281 and 95 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 3.15% to 14.54. Last week was very positive for German stock market as EURO – the common currency used in European countries was the most profitable currency in global market which greatly boosted Key European equity markets. DAX saw 4 of 5 sessions close in green last week with overall week’s performance of DAX seeing 1.5% increase in value.  DAX is expected to have positive performance across today’s market hours as German IFO business climate for August is forecast to have better readings than previous month which indicates a month long positive business climate which is very good news for equity markets.

Positive Cues from Key Asian Markets Helped DAX Open Positive

Asian shares rose on Monday, taking heart from comments by the Federal Reserve chairman that drove Wall Street to record highs on Friday, and as a tweak to the way China’s central bank manages its currency boosted the yuan and stocks. European share markets are following Asia’s momentum opening positive for the day. In China, shares rose to their highest levels in two weeks. Shanghai Composite index added 1.7% after the People’s Bank of China late on Friday revived a “counter-cyclical factor” used to set the midpoint of the daily trading band of the yuan, in a bid to support it. Aside from China, Key Asian markets such as Singapore and Japan also traded on positive note providing bullish influence to European markets as they open for the week.

DAX futures which traded in international market hours ahead of European market hours saw over 0.65% increase in value further indicating that German DAX could open on positive note. Taking cues from strong economic climate and positive influence in international markets DAX opened for the day on positive note and is currently trading at 12433.5 up 0.33% on the day. A better than expected German Business climate data could help equity markets and Euro make bullish headway in today’s market hours. Since trading session opened for the day 25 of 30 stocks that make up DAX index are trading positive.