DAX Index Daily Price Forecast – Healthy Risk Appetite And Easing Sino-U.S. Tensions Likely To Induce Positive Activity in DAX
European markets yesterday saw positive price action all major indices and equities despite headlines influenced cautious investor sentiment in mid-European market hours. Risk appetite remained high in the broad market yesterday as UK parliament had voted against no-deal Brexit outcome, however news of the delay in meeting between Chinese & U.S. Presidents to sign a trade deal between two nations caused investor sentiment to turn cautious. Further, US Trade Representative Robert Lighthizer’s comments that key issues are yet to be resolved added support to bearish influence in the market. However, the UK parliament session’s decision yesterday to delay the Brexit deadline which was in-line with investor expectations helped improve investor sentiment resulting in positive closing on all major stock exchanges across Europe.
Easing Brexit Woes Helped European Market Close on Positive Note
German equity markets which are considered as pseudo indicators/representative of the whole European economic market saw positive price action across the day and closed on a bullish note. Aside from TECDAX, all other major benchmark indices closed positive yesterday. Out of 778 stocks trading in Frankfurt stock exchange, 381 stocks closed in green while 94 closed unchanged at end of trading session. As per data on the performance of sectoral indices in the exchange, out of 18 sectoral indices, 12 indices closed in green at the end of the day with stocks from Consumer & Cyclic, Insurance, and Food & Beverage sectors seeing high levels of gains with all indices seeing more than 0.65% increase in value.
At the end of trading session, DAX & MDAX closed with 0.13% & 0.67% increase in value while TECDAX index saw 0.03% decrease in value. Asian stocks traded positive as influence from UK Parliament’s decision to delay Brexit deadline and news in Pacific-Asian session that stated Chinese Vice Premier Liu He had a telephone conversation with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on trade deal related topic helped ease investor caution. Positive cues from Asian market is also expected to influence bullish price action in the European equity market today. DAX futures trading in the international market was up by 0.27% ahead of European market hours. This suggests that DAX is likely to open positive and trade with bullish bias across the day supported by positive influence from global markets and healthy risk appetite in local markets.
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This article was originally posted on FX Empire
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