Nasdaq 100, FTSE 100, DAX 40 begin week on a quiet footing ahead of rate decisions
Nasdaq 100, FTSE 100, DAX 40 traders await Fed, BoE and BoJ rate decisions each day from Wednesday onwards.
Nasdaq 100 muted after strong recovery rally week
The Nasdaq 100 is beginning the week on a quiet note ahead of Wednesday’s probable first Federal Reserve (Fed) interest rate cut in over four years, having last week rallied by nearly 6%, regaining most of its 22 August-to-September losses.
The index probes its July-to-September downtrend line at 19,472 which may cap, together with the 19,631 late August high. If this level were to be overcome, however, the August peak at 19,938 would be back in focus.
Potential slips may find support around the late August 19,081 low.
FTSE 100 continues to be side-lined
The FTSE 100 still oscillates around the 55-day simple moving average (SMA) at 8,242, having come off Thursday's 8,306 high. Further range trading seems to be on the cards, at least until Wednesday’s Fed rate decision and/or Thursday’s Bank of England (BoE) monetary policy meeting.
Minor support can be spotted at Wednesday’s 8,169 low and major support at the early September 8,153 low.
Only a rise above Thursday's 8,306 and the late June 8,314 highs could put the 8,374 mid-August peak back on the map.
DAX 40 loses upside momentum
The German DAX 40 index, having overcome its 18,580 late July high, seems to be finding it difficult to reach its 18,782 July peak ahead of Wednesday’s Fed interest rate decision. A rise above this level would put the May and early September record highs at 18,935-to-18,994 back on the cards.
The medium-term uptrend is deemed to remain intact while last week’s low at 18,188 underpins.
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