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.
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.
