CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE, DAX and Dow

After a strong session in the US last night, European markets are moving higher, albeit in a tentative fashion.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-05-25T09:16:42+0100

New York Stock Exchange traders

Source: Bloomberg

FTSE 100 driven by the Fed minutes

Markets rallied after the Federal Reserve minutes but we have seen the FTSE run out of steam at 7533, the previous all-time high.

However, the market is arguably overstretched on the hourly chart, so a pullback towards the 7500 level could see fresh buyers come in. Small dips have been firmly bought this week, so it will be interesting to see if this pattern recurs. Only a push below 7360 would signal a potentially bearish development.

FTSE chart

FTSE chart

FTSE chart

DAX faltering but dips are bought

The DAX continues to falter below 12,700, but as with other markets dips have been bought, with drops to 12,600 being the limit on the downside for now.

A push above 12,700 still targets 12,785, and then on to the 12,850 high.

DAX chart

DAX chart

DAX chart

Dow one step away from the all-time highs

US markets continue to exhibit the greatest strength, despite the Fed’s comments about overvaluation in asset markets. Only 21,171 stands in the way of fresh all-time highs for the Dow Jones.

Conversely, a dip below 20,500 would raise the prospect of a new bearish move, but every drop has been firmly bought.

Dow Jones chart

Dow Jones chart

Dow Jones chart

This information has been prepared by IG, a trading name of IG 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.

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional Clients can lose more than they deposit.

The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No. F001780.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UAE and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.