FTSE 100 and DAX higher, but Dow comes under pressure
European markets continue to recover, but the Dow has shed some ground in early trading.
FTSE 100 rebounds from 8000
The FTSE 100 index has rallied off the 8000 level over the past two sessions, providing hope of a rebound.
Since late October, short-term bounces have been viciously sold, so a close above 8200 would be needed to suggest that a secure recovery might be in place. For sellers, any bounce that fails to clear this hurdle might provide fresh selling opportunities.
DAX pushes above 19,000
The modest pullback from the late October DAX 40 record high has been halted over the last 36 hours with a bounce back above 19,000.
Early gains today have helped support a continued bullish view, with a rebound targeting the October high just below 19,700. From there new all-time highs beckon. A reversal back below 19,000 revives the short-term bearish view.
Dow edges lower
The Dow Jones index continues to drift lower after the huge gains made following the election.
Jerome Powell’s comments yesterday about a cautious outlook for more rate cuts have weighed on US indices, which look vulnerable to short-term consolidation or pullback. However, the longer-term bullish view is still secure. The 42,000 area provided support in late September, early October and early November, so will be one to watch in the event of further losses.
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