FTSE 100, DAX 40 and Nasdaq 100 try to stabilise ahead of US inflation data
Outlook on FTSE 100, DAX 40 and Nasdaq 100 ahead of US Fed minutes and PPI data.
FTSE 100 drop slows ahead of early October low
Despite UK unemployment data falling to 3.5%, its lowest level since 1974, the FTSE 100 continued its slide to Tuesday’s 6,850 low before stabilising ahead of Wednesday’s US Producer Price Index (PPI) data which marks a warm-up for Thursday's Consumer Price Index (CPI) figure.
UK GDP fell by 0.3% in August, while the July figure was revised down to 0.1% and the three-month figure also came in at -0.3%. This data did not seem to deter the FTSE 100 from trying to recover some of its recent losses and head back up towards its July low and the September-to-October downtrend line at 7,006. It may stall againn there, though.
A fall through this week’s low at 6,850 would put the early October low at 6,783 back on the plate.
DAX 40 stabilises ahead of US inflation data
The DAX 40’s recent swift descent has taken it to Tuesday’s low at 12,097 with it holding above this low ahead of Wednesday’s US PPI data and Fed minutes as well as Thursday's CPI figures which will be closely watched by market participants.
Immediate resistance comes in at the March to July lows at 12,386 to 12,432 which, together with the September-to-October downtrend line at 12,498, is likely to cap this week.
Failure at this week’s low at 12,097 could lead to the early October low at 11,810 being back in sight.
Nasdaq 100 trades at 2-year lows ahead of US PPI and CPI data
The Nasdaq 100 continues its descent and is fast approaching its September 2020 low at 10,677 ahead of Wednesday’s Fed minutes and US PPI data releases.
For this to be the case, a drop through Tuesday’s low at 10,715 needs to be seen. Further down the July 2020 low can be spotted at 10,318.
Minor resistance above the 11,039 early October low can be found at the 23 September low at 11,168 and then along the six-week downtrend line at 11,360.
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