DAX Index (INDEXDB: DAX) has been gaining strength for the past few days. The positive sentiment in the US & UK equities is now also getting reflected in German equities. After 160 points on Thursday, the benchmark index now stands at its highest level for the month.
On Wednesday, the US Federal Reserve released its much-awaited FOMC statement. The central bank of the biggest global economy raised the interest rates by another 25 bps as per market expectations. Today’s positive price action in the global equities suggests that the rate hike was already priced in.
Why Is DAX Index Surging?
The German economy has remained resilient throughout the ongoing conflict in Ukraine. The European nation had to face energy issues when the war started. However, the government was quick to react and developed alternate sources of gas in time. Consequently, the DAX index is currently among the best-performing indices of the year across the globe.
The benchmark index of German equities refreshed its all-time high in June 2023. However, it failed to gain any strength above its previous all-time high and had a pullback. Now the index is gaining strength once again after a strong earnings season from German companies.
DAX Index Forecast – August 2023
It is quite clear from the following INDEXDB: DAX chart that it is only a hundred points away from breaching its all-time high. While the chart is looking fairly bullish, it is better to wait for it to gain strength above the $16,400 level.
In the meantime, I’ll keep sharing updated analysis on DAX and my personal trades on my Twitter, where you are welcome to follow me.
