FTSE 100, DAX 40 and CAC 40 drop on surprise far-left French election win
Outlook on FTSE 100, DAX 40 and CAC 40 as France faces uncertainty around a hung parliament.
FTSE 100 slips alongside its European peers
The FTSE 100 has once more been rejected by its May to July downtrend line at 8,287 and kicks off the week in the red as Asian and European markets slump amid the French election result ahead of US and China inflation data.
The late May low at 8,138 may be revisited, a fall through which would open the way for the major 8,115-to-8,106 June-to-July lows to be retested.
Minor resistance is seen along the 55-day simple moving average (SMA) at 8,252, the May to July downtrend line at 8,280 and last week’s 8,287 high.
DAX 40 stall below two-week high
The DAX 40's rally to Friday’s 18,665 high has been followed by a slip towards Friday’s low at 18,420 and the 55-day SMA at 18,403 as the outcome of the French election points to political uncertainty. Further minor support can be spotted between the early June low at 18,361 and the 24 and 26 June highs at 18,367-to-18,357.
Only a currently unexpected advance through the May-to-July downtrend line at 18,658 and above last week’s high at 18,665 would push the 18,786 to 18,935 May-to-June peaks to the fore.
CAC 40 slides as post-French election uncertainty rattles investors
The French CAC 40, which on Friday flirted with its 24 June high at 7,725 and briefly rose to a 3-week high at 7,742, so far dropped to below the 200-day simple moving average (SMA) at 7,650, to Monday’s intraday low at 7,617.
While the major French stock index stays above its mid-to-late-June lows at 7,464-to-7,455 but trades below Friday’s 7,742 high, further sideways trading remains in store. A break out of this trading range will likely determine the next medium-term trend.
A rise and daily chart close above Friday’s 7,742 high would confirm a double bottom chart formation and put the April low at 7,852 on the cards, as well as the 55-day simple moving average (SMA) at 7,914 and the psychological 8,000 mark.
Only a fall through the 7,455 June low could provoke a slide towards the January low at 7,281 and perhaps even lead to the 7,000 region being revisited.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, 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. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
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.
