FTSE 100 and DAX higher, but Dow comes under pressure
European markets continue to recover, but the Dow has shed some ground in early trading.
FTSE 100 rebounds from 8000
The FTSE 100 index has rallied off the 8000 level over the past two sessions, providing hope of a rebound.
Since late October, short-term bounces have been viciously sold, so a close above 8200 would be needed to suggest that a secure recovery might be in place. For sellers, any bounce that fails to clear this hurdle might provide fresh selling opportunities.
DAX pushes above 19,000
The modest pullback from the late October DAX 40 record high has been halted over the last 36 hours with a bounce back above 19,000.
Early gains today have helped support a continued bullish view, with a rebound targeting the October high just below 19,700. From there new all-time highs beckon. A reversal back below 19,000 revives the short-term bearish view.
Dow edges lower
The Dow Jones index continues to drift lower after the huge gains made following the election.
Jerome Powell’s comments yesterday about a cautious outlook for more rate cuts have weighed on US indices, which look vulnerable to short-term consolidation or pullback. However, the longer-term bullish view is still secure. The 42,000 area provided support in late September, early October and early November, so will be one to watch in the event of further losses.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
