Yahoo Finance DAX Index Corrects Lower
The DAX index got the much needed correction during the course of the day yesterday which was in line with the correction in many of the stock markets all around the globe yesterday. For the DAX, there were no specific fundamentals for the correction lower and thats why it is viewed more as a correction.
DAX Moves Lower on Global Pressure
As we have said many times over the last couple of weeks, these are still uncertain times as far as the markets are concerned and that is why we have been warning the traders not to get carried away by the choppy moves in the market. There is still a lot of risk in terms of trade wars and actual wars as far as the market is concerned and hence it does not make much sense when the market tries to move up under such circumstances. We have to be very careful on such moves.
Over the past few days we have seen the DAX move up and though it has been based on the anticipation that the QE would continue longer than what was expected, there has been no confirmation of that as yet. This is probably one of the reasons why we saw some profit taking yesterday as the ECB is scheduled to make a rate announcement and have a press conference as well, later in the week and either of these could have a large impact on the market depending on whether the ECB continues to be hawkish or not.
Looking ahead to the rest of the day, there are no economic data or news scheduled for the day and hence we can safely say that there is likely to be a recovery in the markets as traders might try and do a bit of bottom fishing with the bigger news about to be released later on in the week.
This article was originally posted on FX Empire
