DAX Index Price Forecast – German DAX To Continue Bearish Movement For Sixth Consecutive Trading Session

Germany equities were lower at the close on Thursday, as losses in the Basic Resources, Pharmaceuticals & Healthcare and Food & Beverages sectors propelled shares lower. At the close in Frankfurt, the DAX declined 0.71% to hit a new 3-month low, while the MDAX index declined 0.47%, and the TecDAX index declined 0.60%. Declining stocks outnumbered rising ones by 487 to 223 and 68 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 0.71% to 18.33. European markets have been on steady decline this week as equity markets across globe have been taking hits from trade war woes. Meanwhile EURO, the shared currency used by key markets across European countries has failed to provide any positive influence to equity markets as the currency is currently in consolidation phase trying its best to stay above 1.16 handle against major counterpart US Greenback.

Sino-US Trade War Woes Affect Key Equity Markets across The Globe

Asian shares carved out a 14-month trough on Friday as investors feared a new salvo of Sino-U.S. tariffs could come at any moment, while a slump in U.S. chip stocks rippled through the tech-heavy region. Emerging markets in the region were struggling to steady after a punishing week, with Indonesia and the Philippines still badly scarred by fears of capital flight following crises in Argentina and Turkey. Nerves were set to be frayed further as the public comment period for proposed tariffs on an additional $200 billion worth of Chinese imports ends at 0400 GMT. The tariffs could go into effect shortly afterward, though there was no clear timetable. China has warned of retaliation if Washington launches any new measures and this has resulted in a cautious investor approach to equity markets across globe resulting in back to back bearish market sessions.

Key markets such as Nikkei, Shanghai, Hong Kong and Singapore are in red since trading session began for the day down by 0.20%-0.30% on average. German Dax futures trading in international market ahead of European market hours is currently down by 0.07% on the day indicating dovish influence is prevalent among investors during today’s market hours. Trade war woes are expected to affect both Forex and Equity market across globe during today’s market hours.  German Dax is expected to open dovish and trade flat or slightly bearish during today’s market hours as key European markets are expected to see bearish price action on last trading session of the week.