Yahoo Finance DAX Index Daily Fundamental Forecast – November 22, 2017
The DAX index has caught everyone by surprise by totalling ignoring the happenings in the political circles of Germany and continuing to move higher since the beginning of the week. After an initial wobble at the beginning of the week, we have since seen the DAX continue to move higher during this period and continues to look as strong as ever.
DAX Ignores Politics
This is surely a surprise for most of the traders and analysts as well as the Germany troubles have been haunting the currency markets but the stock markets, which are usually more sensitive to such political developments, have been largely ignoring it. Merkel has been unable to get any other party onboard the coalition at this point of time and it is likely that this uncertainty might continue for some more time. In fact, it may end up with her not being able to get anyone onboard at all.
This is likely to affect not only Germany but have serious repercussions throughout Europe as it raises the real possibility of another election coming along in Germany which would only add to the uncertainty. There is no guarantee that Merkel would come out stronger through another election and this is likely only going to make things more difficult not only for Merkel but for the German economy as well.
Looking ahead to the rest of the day, we do not have any major economic news out of Germany for today which would mean that the focus would continue to be on the developments in the political scene over there. But we believe that the DAX is likely to continue to ignore the developments there and any kind of correction should be viewed as an opportunity to buy the index.
This article was originally posted on FX Empire
