FTSE 100, DAX 40 stay close to record highs while S&P 500 dips
FTSE 100, DAX 40 stay close to record highs while S&P 500 dips as earnings season runs its course with McDonald’s and Coca Cola reporting Q4 earnings and in the UK Barclays, BP, Natwest and Unilever.
FTSE 100 remains close to record highs
The FTSE 100 remains close to last week's record high, made close to the 8,800 mark. Solid earnings from index heavyweights AstraZeneca and GlaxoSmithKline (GSK) pushed the UK blue chip index higher.
This week earnings by heavyweights BP, Barclays, NatWest and Unilever will be closely scrutinised by investors.
A rise above Friday's 8,733 high would likely put last week's all-time high at 8,700 on the plate whereas a fall through Friday's 8,684 low might lead to Thursday's 8,661 low being revisited.
DAX 40 remains bid
Last week the DAX 40 index hit another record high close to the psychological 22,000 mark which may soon be reached. This will remain the preferred scenario as long as Friday's low at 21,728 holds. Above it the 21,802 January peak may offer support.
Failure at Friday's 21,728 low may refocus attention on the last Wednesday's high and Thursday's low at 21,663-to-21,638.
S&P 500 under pressure
On Friday the S&P 500's advance ran out of steam at the 6,100 mark, ending the week 0.2% lower despite 77% of S&P 500 companies that have reported fourth quarter (Q4) results posting consensus-topping earnings. According to FactSet, the average growth rate came in at over 16% compared to estimates of just under 12% earnings growth.
Below Friday's 6,019 low meanders the 55-day SMA at 6,000 which may offer support.
Strong resistance remains to be seen between the January-to-February highs at 6,100-to-6,122.
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