FTSE 100 side-lined as DAX 40 hits record and Nasdaq 100 touches 2-month high
FTSE 100 side-lined as DAX 40 hits record and Nasdaq 100 touches 2-month high amid solid US Q2 growth and another China stimulus package.
FTSE 100 stays side-lined
The FTSE 100 trades back above its 55-day simple moving average (SMA) at 8254 but below Thursday’s high at 8330. Above this level lies last week’s high at 8372.
Support below Wednesday’s low at 8229 sits at last week’s 8196 low. A fall through 8196 low would put the early September low at 8153 on the map.
DAX 40 hits new record high
The German DAX 40 index made yet another record high, this time at 19,320 amid positive US growth data and as the People’s Bank of China (PBOC) lowered its reserve requirement ratio by 50 basis points (bps), the second reduction this year, bolstering its lacklustre economy and giving local stock markets a major boost.
Above 19,320 lies the 19,500 region, ahead of the major psychological 20,000 mark.
Potential slips may find support between the 19 September high at 19,048 and the early September high at 18,994.
Nasdaq 100 range trades around the 20,000 mark
The Nasdaq 100 shot up to a two-month high on positive Micron Technology fourth quarter (Q4) results and as the US economy grew by 3% in the second quarter (Q2). The index hit 20,316 before consolidating.
Were the 20,316 level to be exceeded, the July record high at 20,760 would be back in the frame.
The August and last week’s highs at 19,993 to 19,938 may act as minor support. Further support below Monday’s 19,720 low sits at Thursday’s 19,605 low and also at its 13 September 19,557 high. Only a fall through the 16 September low at 19,288 would change the current still short-term bullish outlook.
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