FTSE 100, DAX and S&P 500 all in retreat
A resurgence of trade war fears has hit equity markets, prompting a reversal in key indices
FTSE 100 in retreat on trade war fears
The revival of trade war fears has seen the FTSE 100 drop sharply, falling to the zone around 7480.
This was support throughout July, so a bounce may develop here. Below this, 7440 and the 50-day simple moving average (SMA) comes into play, then down to 7370 and 7340. Falling highs over the past few days mean that the price needs to clear 7600 to fully establish a more bullish view, with trendline resistance at 7555 coming into play before this.
DAX drops sharply
Having fallen below rising trendline support from the December lows earlier in the week, the DAX then attempted to move back above the trendline yesterday before being knocked back once again. This confirms a more bearish view.
Further declines head below 11,900 support, then target 11,704 and the 200-day SMA at 11,640. A rebound above trendline resistance from the late July peak, ie above 12,250, would provide a more bullish view in the short term.
S&P 500 falls below 3000
The S&P 500's steady rebound yesterday was swiftly reversed as the US President Donald Trump revived the prospect of trade wars.
The reversal maintains the short-term bearish view, targeting 2930, and then down to post-December rising support around 2920. Below this, 2870 is possible support. A move back above 2970 might begin to point to the beginnings of a bullish recovery.
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.
