FTSE 100, DAX 40 and Nasdaq 100 stall ahead of US jobless data
Outlook on FTSE 100, DAX 40 and Nasdaq 100 ahead of US Non-Farm Payroll data which may influence the US Federal Reserve’s (Fed) monetary policy going forward.
FTSE 100 rally taking a breather
The FTSE 100 is retracing lower ahead of the widely anticipated US non-farm payroll (NFP) data which may influence the Federal Reserve’s (Fed) monetary policy going forward.
The index has so far rallied by over 4% from its September low on the back of hopes of a slowing tightening path by the Fed after softer US economic data earlier in the week but ran out of steam slightly above the 7,100 mark.
The June low at 6,966 may be revisited. Below it sits further minor support in the 6,945 to 6,934 region, made up of the 26,27 September lows and the 3 October high.
A bullish reversal and rise above this week’s high at 7,104 would likely engage the early September low at 7,131 as well as the 8 September low at 7,174.
DAX 40 slips ahead of US unemployment data
The DAX 40’s swift ascent on hopes of a slowdown in the speed and size of global rate hikes following the Reserve Bank of Australia’s (RBA) lower than expected 25 basis point rate rise on Tuesday is taking a breather ahead of Friday’s US unemployment data.
Following the contract’s technical bear trap, in which it dipped below its key March to July support at 12,386 to 12,432, only to then rally by over 7% to 12,704 before slightly coming off again, led it to revisit the 12,386 July low. Between this level and the 3 October high at 12,275 the DAX 40 may find support, however. If not, a slide towards the 30 September high at 12,138 may be witnessed.
Immediate resistance comes in at the 12,596 early September low above which lie the 23 June low at 12,839, followed by the mid-June low and 20 September high at 12,940 to 12,944.
The next higher 26 July low, 2 September high and 55-day simple moving average (SMA) at 13,021 to 13,066 may still be reached in the days and weeks to come, provided that no drop below the September low at 11,810 ensues.
Nasdaq 100 rally stalls ahead of US Non-Farm Payroll data
The Nasdaq 100’s near 7% rally from its September low has given way to some profit taking ahead of Friday’s US jobless data which should give clues as to the direction the Fed will take with regards to its monetary policy.
Throughout this week various Fed officials have continued to pour cold water on the idea of a pivot, suggesting that there is little likelihood of a change in policy due to the persistence of high inflation.
This has led to the Nasdaq 100 giving back some of its recent strong gains and it slipping towards the 11,306 low seen on Wednesday.
A rise above this week’s 11,668 high would put the early September low at 11,918 on the cards.
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