DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.

Session Summary 12.06.2017

Technological companies were losing value again after Friday’s sales. It is unknown whether the stronger declines are an adjustment or maybe the announcement of the end of the bull market. IT companies are highly valued, so it’s no surprise that the biggest drops start here. The technology sector has been the strongest on Wall Street since the beginning of 2017, gaining over 20% over the period. Goldman Sachs analysts warn of the risk of valuing FAAMG companies (Facebook, Amazon, Apple, Microsoft, Alphabet), whose capitalization has risen by $600 billion, the same as South Africa’s GDP.

Moods improve the winning of the center-right party of President Emmanuel Macron La Republique en Marche (LREM) and its allies MoDem on Sunday’s parliamentary elections in France. It is estimated that these groups can count for 400-445 seats in the 577 deputies of the National Assembly

Investors are waiting for the FOMC meeting, whose results will be announced on Wednesday. The market is pricing for 100% another rate hike in the US. In such a situation, the focus will be on new macroeconomic projections and a dot-plot graph showing future movements in interest rates in the United States. Investors may also be sensitive to possible signals of a reduction in the balance sheet total.

On Monday Nikkei index lost 0.52%. The DAX index was down 0.98%, the S&P 500 ended the day with -0.10%, and the NASDAQ Composite was down 0.52%. The German index has again reversed from around 12800 points. The nearest supports are around 12700 points and 12600 points.

DAX Intraday

After opening the futures market, DAX shot up pivot point around 12720 points. The closest resistance is near R1 12770 points.

Key data for the DAX index

11:00 – German ZEW Economic Sentiment

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