Yahoo Finance DAX Index Forecast – DAX Continues to Push Lower
The DAX index risks further fall in the coming days as the index lost touch with the 12500 region over the last 24 hours and the global stock indices also seem to be in a free fall during this period as the fears of a trade war breaking out seem near and real.
DAX Continues Its Bearish Run
The trade war which began mainly between the US and China has only expanded more and more on each passing day with many of the Eurozone countries, including Germany, beginning to join in on the war and this is not good for any economy in the medium and long term. In fact, some signs of the tariffs being imposed on the goods from different countries are being slowly percolated into the economy of each and every country that has participated in the trade war and the cracks are beginning to show.
This is unlikely to get better anytime soon with each country only trying to outwit the other in terms of size and scale and it looks as though the effects of all this is beginning to show up on all the markets. The global markets have all dropped over the last 24 hours and the DAX index is no exception as it dropped below the 12500 region which opens up the possibility that it could drop even lower towards the 12300 and the 12000 region in due course of time. The lows of the range seem to have given away for now and now we are in risky territory in terms of the technical as well.
Looking ahead to the rest of the day, we have the services and manufacturing flash PMI data from Germany during the London trading hours but considering the risk off mood in the markets all around the globe, it is unlikely to have much of an impact on the DAX index irrespective of which way it comes out. We might see some consolidation in the markets today as the traders and the investors take some profits off the table away from their short positions and this could lead to a stalling of the fall for now.
This article was originally posted on FX Empire
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