DAX Weekly

DAX Index Moves to Highs

The DAX index continued to trade in a very strong manner as the index seems to be threatening to break through the highs of the range that it has been trading in over the last few weeks. The index has certainly got a boost from the anticipation that the QE would be delayed.

DAX Higher on Improved Sentiment

We had mentioned in our forecast yesterday that the DAX is likely to move higher on the general risk sentiment improvement that we have seen over the last 48 hours or so and also due to the fact that the global stock markets have been moving higher. The US stock indices have been moving higher as the earnings season has begun and some of the major companies like Netflix have reported some strong numbers. This seems to have rubbed off on the other stock markets as well and that why we are seeing the DAX moving higher.

DAX Hourly
DAX Hourly

Also, the anticipation of the delay in the ending of the QE, which we had spoke about yesterday, also seems to be increasing almost on a daily basis and with each incoming data, that anticipation is only going to increase if the data comes in weak. This is something that needs to be watched closely as the ECB has not said anything to that effect as such and hence it is only an assumption by the markets so far. This situation is going to develop in a slow and steady manner in the coming days and the traders have to be careful not to get carried away by the rumors.

Looking ahead to the rest of the day, we do not have any major data from Germany but we have the final CPI data from the Eurozone which should have an impact on the DAX, if it misses the expectations in a large way. Even without that, we expect the buoyancy to continue in the markets.