FTSE 100, DAX 40 track Wall Street and Nasdaq 100 higher
Outlook on FTSE 100, DAX 40 and Nasdaq 100 as earnings season kicks off.
FTSE 100 gunning for the 8,000 mark
The FTSE 100 has now broken through the February-to-April downtrend line at 7,788 as a surprise decline in US producer prices raised hopes of the Fed nearing the end of its tightening cycle and propelled both US and Asian equity indices higher.
The UK blue chip index has so far risen on seven consecutive days and probes the 7,854 to 7,876 resistance area, made up of the January high and late February low. This resistance zone may cap in the short-term, but once overcome, could lead to the early March high at 7,976 being reached.
Support comes in along the March-to-April uptrend line at 7,810 and also between the 4 April high at 7,728 and the 7,724 to 7,708 mid-January and early February lows. Provided that the latter support zone holds, further medium-term upside is on the cards.
DAX 40 advances towards its 15-month high
The DAX 40 is rising towards this week’s 15-month high at 15,832 while tracking Wall Street higher, a rise above which would engage the psychological 16,000 mark and then the November 2021 and January 2022 highs at 16,288 and 16,298.
Minor support can be found around the early April peak at 15,742 and along the March-to-April uptrend line at 15,720.
While Thursday’s low at 15,657 holds, short-term upside pressure should prevail.
Nasdaq 100 rallies on hopes of Fed tightening coming to an end
On Thursday the Nasdaq 100 regained practically all of its Wednesday losses when US March producer prices came in at -0.5% month-on-month versus an expected 0%, leading to hopes that the Fed may move away from its tightening path.
A rise above Wednesday’s high at 13,131 would target the 13,226 early April high as earnings season kicks off on Friday with the likes of JPMorgan, Citigroup and Wells Fargo.
The 13,226 level was last traded in August 2022, a rise above which would engage the 13,500 region.
Potential slips may find support around the 22 March high at 12,947 with further minor support coming in along the March-to-April uptrend line at 12,908, ahead of the 10 April low at 12,857 and this week’s trough at 12,819.
While the 12,819 low holds, the March-to-April uptrend remains intact.
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