FTSE 100, DAX 40 and S&P 500 drop sharply amid US tariff impositions
FTSE 100, DAX 40 and S&P 500 drop sharply as US imposes 25% tariffs on Canada, Mexico and 10% on China.
FTSE 100 drops like a stone
The FTSE 100 has come off Friday's 8,693 all-time high amid President Trump's 25% tariff imposition on The US's main trading partners Canada and Mexico and 10% tariffs on China, sparking a trade war with Canada having already retaliated with its own tariffs on US goods and Mexico likely to follow suit.
A fall through Monday's 8,528 intraday low would put the May 2024 peak at 8,479 on the map.
Resistance above the 24 January high at 8,587 lies at Friday's gap low at 8,629.5.
DAX 40 swiftly comes off Friday’s record high
The German DAX 40 index dropped around 2% from Friday's 21,802 record high amid President Trump's tariffs on the US's main trading partners Canada, China and Mexico.
Key support is the 21,080 late January low, a fall through and daily chart close below which could lead to a medium-term top being formed. In this case the first downside target would be the mid-December high at 20,526.
Minor resistance sits at the 24 January high at 51,529 ahead of Friday's 21,596 low.
S&P 500 expected to open significantly lower
The S&P 500 gapped lower amid President Trumps 10%-to-25% tariffs on Canada, China and Mexico and so far slipped to 5,940. This is a level last traded in mid-January.
Failure there may push the mid-November-to-January main support zone at 8,832-to-5,772 to the fore.
Resistance is seen at the 6 January high at 6,018 ahead of Friday's 6,029 gap low.
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