FTSE 100, DAX 40 stay close to record highs while S&P 500 dips
The FTSE 100 and DAX 40 remain near record highs, while the S&P 500 dips as earnings season progresses, with McDonald’s and Coca-Cola reporting Q4 results.
FTSE 100 remains close to record highs
The FTSE 100 remains near last week’s record high, approaching the 8800 mark. Solid earnings from index heavyweights AstraZeneca and GlaxoSmithKline (GSK) supported the UK blue-chip index.
This week, earnings reports from BP, Barclays, NatWest, and Unilever will be closely watched by investors. A rise above Friday’s high of 8733 could push the index towards last week’s all-time high at 8700, while a drop below Friday’s low of 8684 may lead to a retest of Thursday’s low at 8661.
FTSE 100 daily chart
DAX 40 remains bid
Last week, the DAX 40 hit another record high, nearing the psychological 22,000 mark, which may soon be tested. This outlook remains valid as long as Friday’s low of 21,728 holds. Above this level, the January peak at 21,802 may act as support.
Failure to hold Friday’s low of 21,728 may shift focus towards last Wednesday’s high and Thursday’s low, ranging between 21,663 and 21,638.
DAX 40 daily chart
S&P 500 under pressure
On Friday, the S&P 500’s advance stalled at the 6100 mark, ending the week 0.2% lower, despite 77% of S&P 500 companies that have reported Q4 earnings surpassing consensus estimates. According to FactSet, the average earnings growth rate exceeded 16%, compared to initial estimates of just under 12%.
Below Friday’s low of 6019, the 55-day simple moving average (SMA) at 6000 may provide support.
Strong resistance remains between the January to February highs at 6100 to 6122.
S&P 500 daily chart
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