Another strong week for the Nikkei 225, DAX 40 and Dow
Another strong week for the Nikkei 225, DAX 40 and Dow as investors interpret the Fed’s 50 basis point rate cut as avoiding a recession in the US.
Nikkei 225 ends week on a high
The Nikkei 225 has risen in line with US stock indices after the Federal Reserve (Fed) cut its interest rates for the first time in four years and by a bumper 50 basis points (bps) as the Bank of Japan left rates unchanged as expected.
The 200-day simple moving average (SMA) at 38,527 represents the next upside target, followed by the late July and early September highs at 39,179-to-39,281.
Minor support can be seen along the 55-day SMA at 37,195 and the 12 September high at 37,062.
DAX 40 hits record high
The German DAX 40 index made a new record high at 19,048 on Thursday, a rise above which could lead to the major psychological 20,000 mark being reached.
Potential slips should find initial support around the 18,782 July peak.
The medium-term uptrend is deemed to stay intact while last week’s low at 18,188 underpins.
Dow Jones Industrial Average hits yet another record high
The Dow Jones has seen seven straight days of gains and has been hitting new record highs over the past three days, aided by the Fed’s large 50 bp rate cut after holding rates at a 23-year high of 5.25% to 5.50%.
The 42,500 region represents the next upside target zone with the previous record August high made at 41,587 now acting as potential support. This is due to inverse polarity.
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.
