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.
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.
