FTSE 100, DAX 40 and S&P 500 drop as rates higher for longer scenario scares off buyers
Outlook on FTSE 100, DAX 40 and S&P 500 amid signs that Fed members worry about inflation creeping back.
FTSE 100 sees worst day this year
The FTSE 100 continued its short-term bearish run and on Thursday saw its biggest drop year-to-date amid weaker-than-expected flash PMI data for May, especially in the services sector. Further downside pressure is seen on Friday as UK retail sales fell by 2.7% YoY in April versus an expected -0.2% fall.
A potential downside target is the late April high at 8,200 while no rise above Thursday’s high at 8,385 is seen.
DAX 40 falls through uptrend line
The DAX 40 is on track for its third consecutive day of losses, having slid through its April-to-May uptrend line.
Minor support sits at the 4 April 18,429 high ahead of the 24 to 29 April highs at 18,240 to 18,238.
Resistance can be seen along the breached uptrend line at 18,666.
S&P 500 drops heavily from record high
The S&P 500 has swiftly come off Thursday’s record high at 5,343 and slid by over a percent as strong US flash PMI data increased expectations that interest rates will remain higher for longer, leading investors to shy away from risky assets.
A fall through Thursday’s low at 5,257 would put the 10 May high at 5,239 on the map, below which lies the mid-May low at 5,194. Were it to be fallen through as well, a medium-term top may be formed.
Minor resistance above Wednesday’s low at 5,286 is seen at last week’s 5,319 high.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
