FTSE 100 struggles while NASDAQ 100, S&P 500 extend gains post BoE, Fed rate cuts
The FTSE 100 is weighed down by a surge in sterling while the NASDAQ 100, S&P 500 trade in record highs following the BoE and Fed’s 25 basis point rate cuts.
FTSE 100 range trades above support
The FTSE 100's Trump-induced rally to 8,304 on the back of rallying US stock indices has been followed by a drop to 8,131 on Thursday, weighed down by the surge in sterling and a gloomy reaction in a number of consumer-focused stocks.
The 200-day simple moving average (SMA) at 8,117 should continue to offer support with minor resistance sitting at Thursday’s 8,192 high. If overcome, the 8,241 high seen on Monday may be back on the cards whereas a fall though the 200-day SMA at 8,117 would put the key 8,070-to-8,056 support zone on the map. It comprises the 25 July low and the 31 low.
NASDAQ 100 trades in all-time highs
The NASDAQ 100 has seen three days of rising prices, up by over 5% and trading in new all-time highs, following Donald Trump’s election to the US presidency. The index has for the first time ever closed above the psychological 21,000 mark and has the 21,500 region in its sights.
Potential slips should find support around the previous record high made in July at 20,760.
S&P 500 trades in new all-time highs
The S&P 500 has so far rallied by over 4.5% from Monday’s low at 5,696 and is yet again trading in new record highs above its 5,882 mid-October peak with it getting within a whisker of the psychological 6,000 mark. Around it the index is expected to run out of steam, at least in the short-term.
Potential slips should find support around the 5,882 mid-October high.
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