CAC 40, Nasdaq 100 and Russell 2000 try to stabilize after Tuesday’s hit
Outlook on CAC 40, Nasdaq 100 and Russell 2000 ahead of US job openings, manufacturing data and FOMC minutes.
CAC 40 tries to shrug off Monday’s losses
The French CAC 40 stock index has been trading in a sideways trading range below its mid-December all-time record high at 7,653 and on Tuesday dipped to a near one-month low at 7,482 amid rising yields as excessive rate cut expectations were pared back.
Today the index is trying to regain some lost ground but is encountering resistance around the 13 December 7,520 low. Further minor resistance is seen at last Thursday’s 7,531 low and Friday’s 7,570 high.
Were Tuesday’s 7,482 low to be slipped through, the September peak at 7,436 may be revisited over the coming days.
Nasdaq 100 drops for third straight day
The Nasdaq 100’s stiff rally off its late-October low has finally run out of steam after nine consecutive weeks of gains with it hitting a record high at 16,978, marginally below the minor psychological 17,000 mark, before falling for three straight days, the most since October.
Sector rotation out of technology into telecoms, energy, banks and automobiles pushed the Nasdaq 100 lower as well as pared back rate cut expectations and rallying US Treasury yields.
The fall through the October-to-January uptrend line may lead to a slide towards the November high at 16,167 being seen. As long as Tuesday’s three week low at 16,450 holds, though, the mid-December high at 16,667 may be revisited as well as the breached uptrend line, now because of inverse polarity a resistance line, at 16,746.
Russell 2000 slips back to July peak
The Russell 2000 has seen three straight days of losses from its 2,078 December peak, a level last traded in April 2022, amid pared back rate cut expectations and heightened tensions in the Middle East which provoked risk-off sentiment.
The July peak at 2,007 to the psychological 2,000 mark should offer support. If not, the 20 July high at 1,995 might do so.
Resistance above the mid-December high at 2,023 sits at Tuesday’s 2,043 high and at the 20 December intraday peak at 2,046.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
