FTSE 100, DAX 40 and S&P 500 drop sharply amid US tariff impositions
FTSE 100, DAX 40 and S&P 500 drop sharply as US imposes 25% tariffs on Canada, Mexico and 10% on China.
FTSE 100 drops like a stone
The FTSE 100 has fallen from Friday's all-time high of 8693 amid President Trump's imposition of 25% tariffs on the US's main trading partners, Canada and Mexico, and 10% tariffs on China. This move has sparked a trade war, with Canada already retaliating with its own tariffs on US goods and Mexico likely to follow.
A fall through Monday's intraday low of 8528 could bring the May 2024 peak of 8479 into focus.
Resistance above the 24 January high of 8587 lies at Friday's gap low of 8629.5.
FTSE 100 daily chart
DAX 40 swiftly comes off Friday’s record high
The German DAX 40 index dropped around 2% from Friday's 21,802 record high amid President Trump's tariffs on the US's main trading partners Canada, China and Mexico.
Key support is at the late January low of 21,080. A fall through and daily chart close below this level could signal the formation of a medium-term top, with the first downside target at the mid-December high of 20,526.
Minor resistance sits at the 24 January high at 51,529 ahead of Friday's 21,596 low.
DAX 40 daily chart
S&P 500 expected to open significantly lower
The S&P 500 gapped lower amid President Trump's tariffs ranging from 10% to 25% on Canada, China, and Mexico and has so far slipped to 5940, a level last traded in mid-January.
Failure at this level may push the mid-November to January main support zone from 8832 to 5772 to the fore.
Resistance is seen at the 6 January high of 6018, ahead of Friday's 6029 gap low.
S&P 500 daily chart
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