Germany equities were lower at the close on Tuesday, as losses in the Consumer & Cyclical, Technology and Telecoms sectors propelled shares lower. At the close in Frankfurt, the DAX fell 1.10%, while the MDAX index declined 1.00%, and the TecDAX index lost 1.26%. Declining stocks outnumbered rising ones by 507 to 200 and 77 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 3.91% to 17.44. European markets took a hit yesterday on a widening of the EU/US spread, EM sell-off, Italian budget concerns and due to ongoing trade war angst. Further market was weighed down yesterday as EURO took a bearish hit as the U.S./German 10-year yield spread widened by 7bps. Equity markets suffered downwards movement on Wall Street yesterday with a drop in heavyweights Facebook and Nike greatly providing bearish influence on market.
Bearish Wall Street Cues Influenced Dovish Performance in Asian Markets Ahead of European Market Hours
Asian market opened dovish and investor sentiment continues to remain bearish over cues from Wall Street with all major Asian markets seeing bearish movement. Chinese and Singapore markets are down by more than 1% on the day while Japanese Nikkei closed for the day down by 0.44%. Asian markets are expected to provide additional bearish influence to European equity markets which have already taken a hit owing to political issues such as Italian Budget Plan and Brexit Woes which are greatly pressuring the market in a risk-off scenario as investors are moving their funds to US Greenback ahead of US govt implementing tariff on Chinese goods as US Greenback is currently viewed as a safe haven instrument.
DAX Futures trading in international market is down by 0.52% ahead of European market hours indicating possibility for bearish opening of German DAX index in today’s market hours. U.S./German 10-year yield and NAFTA talk resumptions are main focus of investors across globe today while a softer EURO fails to provide strong support to German Equities. All key European markets are expected to trade bearish today adding to negative cues from European allies as well. DAX index is expected to open with a gap down and trade downtrend across today’s market hours.