FTSE 100, DAX and Dow surge higher after dovish Fed meeting
FTSE 100, DAX and Dow gain ground after Fed meeting. With the BoE seen as the outlier to the ECB/Fed easing story, it is unsurprising to see the FTSE lag its peers.
FTSE 100 turns higher after recent retracement
The FTSE 100 is regaining ground this morning, following on from a downward retracement on Wednesday morning.
The uptrend remains intact as long as we trade above the 7315 swing low. As such, watch out for further upside to come, with a rally through 7470 providing a signal that we are due the next leg higher for the index. Until then, there is still a chance of another lower retracement given the mid-sized pullback seen thus far. Watch out for the Bank of England (BoE) meeting as a potential driver of price action today.
DAX powers higher after minimal pullback
The DAX showed little sign of wanting to retrace yesterday, with the European Central Bank (ECB) president Mario Draghi’s dovish stance hugely improving sentiment for this index.
The break through 12,360 resistance provided us with a renewed buying opportunity, where the shallow nature of the recent pullback means that stop-loss placement need not be too far from entry. As such, a bullish short-term outlook remains in play as long as we do not see a break below the 12,282 support level.
Dow pushes higher after dovish Fed stance
Yesterday’s US Federal Reserve (Fed) meeting helped boost sentiment for the Dow Jones, with the index rising off the back of a minimal retracement.
That recent swing low of 26,414 is key here, with a bullish outlook in play as long as we remain above that level. However, it is also worthwhile noting the 26,710 resistance level up ahead that must be overcome to continue these current gains.
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