Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

FTSE 100, DAX and S&P 500: spiralling lower as Russia invades Ukraine

The FTSE 100, DAX and S&P 500 have dropped out of bed in light of Russia mounting a full-scale invasion of Ukraine.

Indices Source: Bloomberg

​FTSE 100 falls to 200-day SMA as Russia invades Ukraine

As Russia invades Ukraine and president Putin declares war on his Russian neighbour, the FTSE 100 took a beating but less so than other European indices such as the DAX, for example.

This has to do with the fact that the FTSE 100 is commodity, and especially oil, heavy with the likes of BP and Shell outperforming. The index is thus benefitting from the rise in commodity prices on the back of the Russian invasion.

The FTSE 100 nonetheless dropped sharply to the 200-day simple moving average (SMA) at 7223 which so far offers support, just as it did in September, November and December. Were it to be slipped through, however, the late December low at 7100 would be targeted next.

Minor resistance seen at the 22 February low at 7360 is expected to cap any potential short-term bounce today, together with the breached three-month uptrend line at 7375.

FTSE 100 chart Source: IT-Finance.com
FTSE 100 chart Source: IT-Finance.com

DAX drops like a stone on full-scale Russian invasion of Ukraine

The DAX 40 fell out of bed as Russia mounts a full-scale invasion of Ukraine, earlier dropping by as much as -5% to the pre-Covid-19 pandemic February 2020 high and 50% retracement of the October 2020 to November 2021 advance at 13,831 to 13,810 which offered interim support.

Slightly further down the January 2020 high and February 2021 low can be found at 13,644 to 13,641. Minor resistance sits at the 22 February low at 14,305 and major resistance at 14,840 to 14,917. This resistance area is made up of several monthly lows going back to May 2021.

DAX 40 chart Source: IT-Finance.com
DAX 40 chart Source: IT-Finance.com

S&P 500 spirals towards May 2021 low at 4030 on Russian invasion of Ukraine

The S&P 500 is on track to tumble to the June 2021 low at 4130 and may continue its slide to the 4030 May 2021 low as Russia declares war on Ukraine.

Around the minor psychological 4000 mark the index may stabilise, however, since the February and mid-March 2021 highs were also made in this vicinity.

A potential short-term bounce is likely to encounter resistance at the 4214 January low. Together with the July 2021 trough at 4224 it is likely to cap the upside today.

S&P 500 chart Source: IT-Finance.com
S&P 500 chart Source: IT-Finance.com

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

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.