DAX is one of the most popular indexes in the world. It is listed on Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 30.05.2017
Stock markets have been slowing down the last rallies. Confusion around Donald Trump has been somewhat muted, but other disturbing information is coming to the market. There is growing concern about the weakening support for Theresa May’s party in Britain. Elections on the Islands, which will take place on 8 June this year were to strengthen the mandate of current prime minister before beginning of EU exit procedure.
WTI crude continues to hold below $50 a barrel despite prolonged cut of production for another 9 months by OPEC countries. The reason may be the beginning of the so-called “driving season” in the United States.
In addition, the FOMC meeting, which is likely to anounce another rate hike in US is also approaching. Some members of FOMC, such as Robert Kaplan, chairman of the Dallas Fed, believe that Fed in 2017 should raise federal funds rate twice and start reducing its balance sheet total. A little help comes from ECB, which Mario Draghi said on Monday, that Eurozone still needs to be supported by loose monetary policy, which cuts back speculation that ECB is slowly aproaching to end its QE program.
Index is still hovering around 12600 points. On daily chart occured a formation of a hammer, which perfectly stopped at 12600 points and is a sign of growth. The next level is historical maxima around 12800 points.
DAX Intraday
DAX Index, after opening cash market, broke pivot point around 12600 points. Currently a correction which is taking place broke that level and gave a signal to move to 12550 points.
Key data for the DAX index
11:00 – HICP inflation – estimates (y/y) in the Euro Zone
11:00 – Unemployment rate
