CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Overnight bounce fizzles out for FTSE 100, DAX and Dow

Indices bounced overnight, but the gains are coming under threat in early trading this morning.

FTSE 100 stuck near overnight lows

The FTSE 100 has stabilised for the time being, rallying from the 7130 level that acted as support in December 2019.

Having seen the initial bounce, we now wait to see whether the price can hold the low from yesterday and carve out further higher lows and then higher highs above 7200. Further declines below 7130 bring 7000 into view, the lows from August and October.

DAX struggles to hold overnight gains

For the time being, the selling has paused at 13,000, the DAX bouncing from this level overnight.

Now the rally needs to continue, moving above 13,200 and holding above the overnight low. A key indication will be whether it can move and hold above the 50-hour simple moving average (SMA) of 13,290. Further losses below 13,000 target 12,653 and the 200-day SMA.

Dow looks to recover from sell-off

Having seen 1500 points wiped off the Dow Jones in a week, there are signs of a small recovery.

So far, the overnight bounce has stalled at 28,200, although if it can continue to hold above yesterday’s low at 27,860. Below this, 27,400 comes into play. A good first step in any recovery would be a move back above the 50-hour SMA, currently 28,522. If it can hold above this indicator, then a more durable low may form.

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.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.