DAX Index Daily Price Forecast – DAX To Trade Positive Supported by Increased Risk Appetite in European Market

Germany equities were higher at the close on Monday, as gains in the Food & Beverages, Insurance and Transportation & Logistics sectors propelled shares higher. At the close in Frankfurt, the DAX rose 1.45%, while the MDAX index climbed 1.06%, and the TecDAX index climbed 1.43%. Advancing stocks outnumbered falling ones by 484 to 226 and 68 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was down 3.74% to 19.06. European equities yesterday traded in green and closed positive for the day with significant gains as up move was supported by hawkish influence gained from unanimous approval of latest draft suggested by UK’s PM May over Brexit Negotiations concluded this weekend.

Latest Developments Surrounding Italian Budget To Support Positive Price Action in European Market

The momentum was further supported by hawkish EURO is broad market owing to comments from Italian deputy prime ministers who revealed Italian government’s stance on making changes in Italian budget stating that they are ready to make changes to deficit target as long as the main measures in the budget remain unchanged which greatly boosted investor sentiment and resulted in market seeing increased risk appetite. The spread differences between IT-DE bond yields have reduced providing great deal of hawkish influence to equity and forex markets. Asian share markets fought to keep a global rebound alive on Tuesday after U.S. President Donald Trump seemed to quash hopes of a trade truce with China, clouding what had been a bright start to the week.

Singapore and Japanese markets which hold great influence over price action in other Asian and international equities traded positive in Asian markets while other major equity markets in Asia namely China’s Shanghai & Hong Kong saw bearish price action over comments from US President Trump who mentioned plans to increase tariffs on Chinese goods from 10% to 25% resulting in decreased risk appetite in Asian market hours. DAX futures trading in international market are up by 0.08% on the day ahead of Frankfurt market opening. German equities are expected to open positive for the day supported by positive development in European political climate and DAX is expected to resume yesterday’s positive price action but upside could be limited owing to risk off sentiment influence by latest escalation in Sino-U.S. trade war.