DAX Index Daily Fundamental Forecast – December 1, 2017
The DAX index continues to chop around the 13000 and 13200 region as the lack if fundamental and economic drivers and the fact that the talks over forming the coalition still continues, has been leading to some uncertainty and risks in the market which has confused the investors and traders on whether they want to buy or sell at this point of time.
DAX Likely to Continue Consolidation
We are seeing some slow progress being made in the coalition talks between Merkel and other leaders in Germany and it looks as though a deal is very close and might be announced pretty soon. Such a deal would be the impetus that the DAX needs at this point of time and that is what is likely to break the consolidation and the ranging that we are seeing in the DAX over the last few days. It is likely that the index would continue to range till a deal is reached.
The DAX is likely to be kept buoyed in the meantime by the fact that we are getting close to a deal in the Brexit talks as well. The talk of the UK walking aways from the talks with no deal being reached has been replaced by talk of a good deal and any kind of a deal is likely to benefit both sides and this would also be welcomed by the traders. The US stock indices have also been buoyed by the smooth passage of the tax reform bill through the Senate so far and that is beginning to have an effect on the global stock markets as well.
Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone and hence we are likely to see the consolidation and the ranging in the DAX index continue for today as well.
This article was originally posted on FX Empire
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