DAX Index Daily Fundamental Forecast – December 12, 2017
The DAX index continued to trade in a tight manner and consolidates and ranges during the last 24 hours. There was nothing much fundamental going on in the markets and hence it was only logical that the index did not have much impact from outside forces and spent the day in choppy trading moving in either direction with no specific trend.
DAX Stays in Range for Some More Time
This has been the case with the index for the past couple of weeks as it continues to chop around the 13000 region. The index has been held back by the Brexit talks and the political troubles of Merkel and with the risk sentiment around the world also not being too favorable, the index has chosen to take some rest. The US stock indices continue on their merry ways but they are driven more by specific domestic factors like the tax reform bill and have had little impact on the rest of the world.
On the other hand, the Eurozone has had many issues with deal with on its own. The Brexit deal is still not at hand and this is evident from the heavy trading that is being witnessed in the stock markets. Try as they might, the UK and the Euro leaders have been struggling to strong together a deal that is agreeable to everyone and this delay and uncertainty is not only weighing on the UK but also on the Eurozone markets as well as both of them stand to benefit out of a deal.
Looking ahead to the rest of the day, we do not have any major news from Germany but we have a speech from Draghi much later in the day. That is unlikely to have an effect on the DAX index and we should see more of the consolidation and ranging for today as well.
This article was originally posted on FX Empire
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