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.

Levels to watch: FTSE, DAX and Dow

There has been some weakening across the board for stocks, as a decreasing dollar boosts sterling and the euro and thus puts pressure on the likes of the FTSE and DAX.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-01-12T09:29:38+0000

Data on screen

Source: Bloomberg

FTSE 100 could find resistance at 7333

The index has fallen back from its highs above 7300, but while this may simply be another dip in this remarkable trend, a rising pound (admittedly off its lows) could spell the end for the rally.

We would look for an initial close below 7250, and then sub-7200, as an indication the sellers are now in control. Resistance lies at 7295 and then 7333.

FTSE 100

FTSE 100

FTSE 100

DAX could target 11,420

Despite a push to fresh highs for the year yesterday, the index is weakening this morning. However, bears will need to get the price below the key 11,500 area that has acted as support since the beginning of the year. A close below here would then target 11,420, and then move down to 11,300.

If the price recovers and rallies through 11,624 then we look the 11,725 area as the next point of potential resistance.

DAX

DAX

DAX

Dow stutters post 20,000

The excitement around Dow Jones 20,000 has masked the fact the index has gone nowhere since mid-December. There is plenty of short-term support available, at 19,855, 19,769 and then 19,708, but below the latter we could see a swift move to 19,408.

The 20,000 mark still remains the key area to watch for on the upside.

Dow Jones

Dow Jones

Dow Jones

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IG Group is intended for general circulation. 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 or 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. In addition to the disclaimer above, 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.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or 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.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.