US inflation data drives rebound for Dow, Dax and Nikkei 225
Indices have staged a rebound after their wobble in the wake of yesterday’s US inflation data.
Dow surges from one-month low
The Dow Jones index briefly hit a one-month low yesterday, slumping below 40,000, before staging a huge rebound that put it back above the 50-day simple moving average (SMA).
This continues to reinforce the view that the price is on course back to the 41,500 highs seen in late August.
This view remains in place unless we see a close back below the 50-day SMA, which may then indicate a more substantial pullback is underway, aligning with September and October’s weaker seasonality.
Dax recovers 18,500
The Dax 18,200 level continues to hold as support, and with the price pushing above 18,500 in early trading the pullback from the September high may have been halted.
Further gains target the 19,000 level once more, with the bullish short-term view in place unless we see a reversal back below 18,200, which might then trigger a pullback towards the 200-day SMA (currently 17,851).
Nikkei 225 rebounds from Wednesday low
Japanese yen weakness following the US inflation report gave the Nikkei 225 the strength to rebound from the lows of the session.
If a higher low has formed then the price may push back towards the 39,000 highs seen at the beginning of September, while a longer-term bullish view supports a push back to the July highs at 42,485.
Sellers will want to see a reversal that closes back below 35,000.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
