DAX Index Price Forecast – Positive Investor Sentiment Influenced By Brexit Headlines To Help DAX Remain On Upside

Momentum from Brexit headlines are expected to help DAX remain on upside during today’s market hours.
Colin First
DAX Tuesday

Germany equities were mixed at the close on Monday, as gains in the Food & Beverages, Media and Utilities sectors propelled shares higher while losses in the Pharmaceuticals & Healthcare, Chemicals and Financial Services sectors led shares lower. At the close in Frankfurt, the DAX rose 0.22%, while the MDAX index gained 0.61%, and the TecDAX index fell 0.11%. Advancing stocks outnumbered falling ones by 462 to 255 and 62 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 3.72% to 17.03. Eurozone Sentix investor confidence data released yesterday was worse than expected which provided negative influence in equity markets however positive market sentiment over updates on Brexit proceedings helped both shared currency and equity markets close positive for the day.

Lack of Updates on Sino-U.S Trade War Proceedings Helped Reduce Market Impact from Trade War Woes

Asian shares were struggling to avoid a ninth straight session of losses on Tuesday as the spectre of a Sino-U.S. trade war haunted investors. Having warned last week that he was ready to levy additional taxes on practically all Chinese imports, U.S. President Donald Trump was uncharacteristically quiet on trade on Monday. China has cautioned it will respond if the United States takes any new steps on trade, meanwhile Foreign Minister Chrystia Freeland will meet the U.S. Trade Representative in Washington later today for another round of talks to renew the NAFTA trade pact.  While Japanese Nikkei fared better on the back of a softer yen and rallied more than 1%, other major indices such as Shanghai Composite, Hong Kong’s Hang Seng and Singapore’s STI are all trading downtrend providing bearish influence to allied markets.

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European markets are expected to open positive for the day as investors around the globe are still pricing in momentum from Brexit headlines and the shared currency EURO is also trading positive in global markets riding on Brexit momentum indicating signs of positive investor sentiment in Europe. Meanwhile DAX futures trading in international market ahead of German market hours is trading near flat albeit on upside movement and is up 0.02% on the day as of writing this article. DAX index is expected to open positive and trade neutral or slightly positive on the day while a look at 4 hour and daily charts suggest possibility of a range bound movement in today’s market hours.

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