FTSE 100, DAX 40 and DOW await plethora of earnings reports
Outlook on FTSE 100, DAX 40 and DOW ahead of major US earnings by the likes of Alphabet, Amazon and Meta.
FTSE 100 began week under pressure
The FTSE 100 opened lower on Monday morning amid weaker sessions in Asian markets, except for the Japan 225, as investors cautiously await a plethora of major earnings reports.
Further consolidation below the FTSE 100’s seven-week high at 7,938 is likely at hand for Monday’s session with an overall upside bias remaining in play while last week’s low at 7,872 underpins on a daily chart closing basis.
The FTSE 100 has been range trading in low volatility since mid-April with the wider support zone between the 7,876 to 7,854 January high and late February low propping the index up.
Failure at 7,854 would have short-term bearish implications with the late January high at 7,812 being eyed whereas a rise above last week’s high at 7,938 would engage the early March high at 7,976 as well as the psychological 8,000 mark.
DAX 40 range trades below its 15-month high
Last week the DAX 40 reached a 15-month high at 15,923 before tracking Wall Street lower on mixed earnings and hawkish Fed comments ahead of its blackout period to 15,704, only to then rally again on Friday.
It did so as preliminary PMIs in Europe rose, beating expectations and pointing to expansion in the services sectors but despite manufacturing figures coming in lower than expected in France, the UK and Germany, all pointing to contraction.
For this week resistance sits at last week’s highs at 15,915 to 15,923. Above it lurks the psychological 16,000 mark and sit the November 2021 and January 2022 highs at 16,288 to 16,298.
Support can be spotted along the March-to-April support line at 15,754 and also at the 15,742 early April high. Further down lie the 15,709 March high and last week’s low at 15,704. While it underpins, medium-term upside pressure should retain the upper hand.
Dow awaits plethora of US earnings reports
The Dow Jones Industrial Average (Dow), along with its US counterparts such as the S&P 500, Nasdaq 100 and Russell 2000, for example, await a plethora of earnings results by the likes of Alphabet, Amazon, Boeing, Coca Cola, Exxon Mobil, Mastercard, Meta, Microsoft and Visa this week.
The Dow’s rejection last week by the December-to-April downtrend line at 34,133 has led to a drop towards the 33,577 early March high unfolding.
Strong resistance comes in at the 34,105 to 34,133 mid-April highs.
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