DAX Index Price Forecast – German DAX Opens Positive amid Mixed Cues from Global Market

Germany equities were higher at the close on Wednesday, as gains in the Financial Services, Pharmaceuticals & Healthcare and Retail sectors propelled shares higher. At the close in Frankfurt, the DAX added 0.01%, while the MDAX index added 0.19%, and the TecDAX index gained 0.34%. Advancing stocks outnumbered falling ones by 362 to 325 and 91 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 0.60% to 15.35. Global equity markets are influenced by mixed cues post hawkish update from FOMC update yesterday as each key markets have their own positive factors while dollar has both positive influence from rate hike news and negative influence owing to Trump woes which has resulted in US market seeing mixed close on Wednesday while implementation of tariff in both US & China resulted in sideways movement in Asian stock markets.

Mixed Cues From Wall Street & Asian Markets To Influence Sideways Movement in DAX

Key U.S. government debt yields slid to six-week lows on a flight to safety and the dollar slid further on Wednesday as investors weighed how a conviction and a guilty plea of former advisers will impact U.S. President Donald Trump. A gauge of global equities rose lifted by higher energy prices and strong earnings from retailers, on day that Wall Street marked the longest U.S. bull market. That milestone came a day after the S&P 500 stock index set an all-time intraday high. Asian shares slipped on Thursday as a deadline loomed for fresh U.S. tariffs on China and amid speculation U.S. President Donald Trump’s political position could be threatened by the legal woes of two former advisers. The world’s two largest economies escalated their trade war on Thursday with the implementation of 25% tariffs on $16 billion worth of the imports from either side.

Investors now focus on Eurozone PMI, ECB policy meet update and on the Italian government borrowing costs for clues to see if the trade war is having a negative impact on the Eurozone economy. German DAX futures trading in international market is moving near flat with slight downward movement ahead of European market hours indicating that DAX index could have a muted opening for the day and possibilities for sideways movement during late European market hours. However key Asian markets such as Japan, China & Singapore saw their respective stock exchanges perform on positive note despite cautious tone in market over Sino-U.S trade war proceedings. DAX in today’s market hours could see limited price action with change in value limited by 15% to 20% on either side.