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 100, DAX and S&P 500

While US markets remain robust, the same cannot be said for UK and European markets.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-12-15T09:40:12+0000

Video poster image

FTSE 100 drops back below 7450

The FTSE 100 rally has faltered and dropped back below the 50-day simple moving average (SMA) at 7455. For the time being, this may still be a possible buying opportunity, but the dip will need to avoid moving back below the 200-day SMA (7404).

The loss of 7450 is a bearish sign, and may well imply that we have seen a lower high following on from November’s peak. However, pre-Christmas strength should start to kick in from today, so there is still the potential for a bounce, with a move above 7500 clearing the way to 7600.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX presses on to bottom end of range

Those who opted to go short when the DAX tested 13,200 have been proved right, as the current range continues to hold sway.

Further declines will test 12,954 and then 12,844, with a close below the latter opening the path to 12,675.

DAX chart

DAX chart

DAX chart

S&P 500 edges lower

A small pullback sees the S&P 500 off its fresh all-time highs, but the broader trend is still intact.

A bigger fall will see 2604, and then 2597 tested, with the 50-day SMA at 2594 also potentially coming into play.

US 500 chart

US 500 chart

US 500 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.