DAX Index Daily Price Forecast – DAX To Trade Positive On Risk On Investor Sentiment
European markets yesterday saw positive price action in both forex and equity instruments in all major European markets. The positive price action was in equity market was underpinned by healthy risk appetite, positive industrial production data in Euro area and hopes for UK parliament voting against no-deal Brexit outcome. This helped all major stocks and equity indices in key European stock exchanges close in green as the trading session came to a close for the week. The outcome of parliament meeting was as expected with lawmakers voting against no-deal Brexit outcome. This combined with weak USD owing to worse than expected macro data outcome in US macro calendar for consecutive trading sessions helped major forex pairs trade positive across yesterday’s European and US market hours.
Risk On Investor Sentiment Underpins Market Bulls
German equity market saw overall positive price action and this was clearly visible from the performance of major benchmark indices and sectoral indices in Frankfurt stock exchange. Aside from TECDAX, all other major benchmark indices closed in green at the end of yesterday’s trading session. Out of 778 stocks trading in Frankfurt stock exchange, 426 stocks closed in green while 97 closed unchanged at end of trading session. As per data on the performance of sectoral indices in the exchange, out of 18 sectoral indices, 13 indices closed in green at the end of the day with stocks from Pharmaceuticals, Banks, Transport & logistics and Chemicals sectors seeing high levels of gains with all indices seeing more than 1% increase in value.
At the end of trading session, DAX & MDAX closed with 0.42% & 0.84% increase in value while TECDAX index saw 0.11% decrease in value. Asian market saw mixed price action as Japanese, Hong Kong, and Singapore equity markets saw positive price action on Wall Street cues while Chinese equities from – Shanghai stock exchange saw dovish price action over disappointing Chinese industrial production and house price balance data update. DAX futures trading in the international market were up by 0.40% ahead of the Frankfurt market opening and investor sentiment in the European market show positive tone on expectations for UK parliament to vote on delaying Brexit deadline. Positive cues from Wall Street and Asian markets combined with risk-on trading activity are expected to influence positive opening and bullish price action across the day in DAX index and German equities.
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This article was originally posted on FX Empire
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