Dax continues to increase

Dax continues to increase

On the first trading day of the week, the positive outlook shifted some direction as of Wednesday in the indices, which accelerated the gains with rising risk appetite in the markets. Particularly after the agreement between the U.S. and Mexico, demand for the indices increased due to the expectation that the Fed would cut interest rates at its July meeting. In addition, US President Donald Trump argued that interest rates should be lowered in terms of the course of the economy and the expectation of interest rate cuts in the markets strengthened. However, yesterday, Trump threatened additional tariffs on Chinese imports if President Xi Jinping will not attend the upcoming G-20 meeting in Japan. This development weakened the potential of the upward trend in the indices, causing the Dax index to close the day at a limited rate of +0.1 percent. On the other hand, Prime Minister Theresa May, who resigned from the leadership of the Conservative Party in the UK on 7 June, increased the concerns on the Euro Zone economy. 10 candidates for the Conservative Party leadership will compete for the seat after May’s resignation. However, these candidates were reduced to 2 people and the new party leader is expected to be announced on 23 July. Following this uncertainty, we can say that the impact of the pressure elements in the Dax index on the price movement remained limited. The 4.8 percent increase in the ThyssenKrupp stock accelerates the upward movement in the index. In addition, the positive effect of Deutsche Bank is felt as it closed day with gains at 3.7 percent. Today, the statements of ECB President Draghi will be closely monitored in terms of index pricing. In light of all this information, the Dax index, which accelerates its rise from 12,000 and is in a gaping movement, is attempting to return to the rising channel formation previously broken down.