The DAX index failed to enjoy a bullish rally like its US counterparts yesterday. Germany’s blue-chip stock index lost 0.40% when it closed at 13,236.42. As of this writing, the DAX index is marginally lower by 0.08% or 10.63 points at 13,225.79.
Volkswagen and Continental dropped the most when they both lost by 0.81%. They were followed by Daimler which was down 0.76%, and BMW which was in the red by 0.66%.
Without any major economic data from Germany or the rest of euro zone, investors had little motivation to push the index higher. Only the German GfK Consumer Climate report was released yesterday and it printed as expected at 9.7.
For today, only German import prices were scheduled for release. Data for October shows that import prices marginally declined by 0.1%, beating forecasts for a 0.2% slide. No other report is on tap today. This means that the German stock index will likely take its cue from developments surrounding the US-China trade negotiations.
US President Donald Trump once again said that they are close to finalizing a part of their deal. Market participants will likely be keeping an ear out for more tangible details moving forward.
If risk appetite spills over to today’s European session, the DAX index could revisit its November 19 highs at 13,373.99. On the other hand, if risk appetite dampens market sentiment, the DAX index could trade lower to last week’s lows around 13,084.49.Download our latest quarterly market outlook for our longer-term trade ideas.