Yahoo Finance DAX Index Daily Fundamental Forecast – March 23, 2018
The DAX index crashed lower towards the lows of its larger range and it looks as though more pain is likely along the way as the index comes under extreme pressure over the uncertainty and the risk that has been rocking the trading world over the last 24 hours. There does not seem to be any end in sight to this and this is likely to only add pressure to the DAX in the coming days.
DAX Dives Lower
The trading world has been shocked to see the trade war escalate between the US and China and with the threat of other countries also joining in, the threat is now real and upon the markets much sooner than what they would have expected. The US administration has imposed tariffs worth $60 billion on goods from China and has also warned that more such measures would follow. The Chinese have also responded by imposing tariffs on the US steel and aluminium and they have also said that this would be the first of many such measures.
We have been pointing out many times over the last few weeks that a global trade war is something that is not good for any of the parties that are involved and in fact, for any of the major economies around the world. The Eurozone also seems to have joined in with the German leader Merkel saying that they would also respond if they are hit with tariffs and sanctions and this has caused the index to dive lower through the 12000 region and it trades below that region as of this writing.
Looking ahead to the rest of the day, as we look around, we are seeing many of the Asian markets taking a dive as well and this is likely to have an impact on the DAX when it opens up today. We are likely to see more blood in the markets for today as the traders sort out their response to this new challenge and uncertainty.
This article was originally posted on FX Empire
