Will Dax’s summer slump continue? [Video]
|Over the last 25 years, the two weakest months of the year for the DAX have been August and September. This year, at the time of writing, the DAX has fallen just over 5% so far. The question is, will the summer slump continue?
Looking into the detail of the DAX’s seasonality, we can see some interesting data. First of all, the average falls between August 21 and September 30 have been 2.64%. However, the total number of falls has only been 48%, so whether the year is a gain or a loss has been roughly evenly split. The noteworthy point though is that falls have outstripped gains in the extent of those falls.
So, with markets nervous about the prospects of global growth, China’s slow-down worries, high-rate expectations weighing on US stocks, and uncertainty over the health of Europe’s economy, can DAX fall again this summer?
Major Trade Risks: The biggest risk here has to do with the path of Europe’s economy and that will depend on upcoming data.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.