The DAX has continued to consolidate and range on Friday as there was no specific direction from anywhere. We saw that the news has basically not had much of an impact on the markets as yet. Even the NFP data from the US, which normally tends to rock the markets, did not have much of an impact and we saw the index continued to range around the 12500 region.
DAX Under Pressure
It is going to take time for the index to get its next direction as it has been volatile over the last couple of weeks and only now does it begin to seem as if it wants to settle down. The index had been rocked by fears of a trade war between the US and the Eurozone and the fact that the issue managed to get itself sorted out, after the meeting between the leaders of the US and the Eurozone, had served as a boost for the index. But the impact of that seems to be wearing down in a slow and steady manner as the time passes on.
This has led to a correction back to the support region and now with the global indices also seemingly under pressure, it looks as though this situation might continue for the time being and the index would take some time to sort itself out. We believe that the index would be under pressure overall over the next few days and this is going to have an impact on the market and it is not a good time for the traders to think about going long as yet.
Looking ahead to the rest of the day, the Asian stock markets seem to have started out on a slow note for the week and this is likely to keep the DAX under pressure as well, when it opens. This is likely to continue for the first half of the day and then the direction is expected to be driven by how the US stock indices open up.