Yahoo Finance DAX Price Forecast – DAX Continues Under Pressure
The DAX index gotsome respite as there seemed to be a break in the selling that had been witnessed in the market all around the globe over the last few days. This led to some consolidation and ranging in the markets during the last 24 hours as a result of which the index now rests just below the 12300 region as of this writing.
DAX Below 12300
It is amply clear on who is in control of the index at this point of time and it is also quite obvious on why the index is under pressure. Long term investors and traders do not want to enter into the markets at this point of time as the trade war between the US and China intensifies and it is increasingly looking as if the other countries, especially the ones in the Eurozone would get involved and this would not be good for the economy of any of the countries involved in this trade war. Also, with the US coming up with some strong policy changes almost on a daily basis, it is becoming increasingly difficult to have a long term outlook for the markets.
It is difficult to have any sense of stability in the markets at this point of time and this is of course good for the short term and the day traders who love the volatility. There was not much by way of fundamental developments yesterday and we also saw a slight recovery in the US stock indices. In fact, even an absence of bad news is considered as a good event in the markets nowadays and these are the times that we live in and the traders have to get used to that.
Looking ahead to the rest of the day, we do not have any major fundamental news or economic data from the Eurozone or Germany that is likely to affect the markets and as we wind down towards the end of the month, the focus is likely to shift to option expiries and month end flows.
This article was originally posted on FX Empire
