FTSE 100, DAX and S&P 500 all rally following Draghi speech
Mario Draghi’s speech has resulted in gains for equity markets, although some caution persists ahead of the Fed meeting.
FTSE 100 finds strength to rally
Yesterday saw the FTSE 100 push sharply higher, after a week or so of indecisive price action.
The peak from late April, 7530, is the next target, and from there 7556 and 7644 are areas of potential resistance in the near term. The bullish view remains until we see a move back below the 50-day simple moving average (SMA) of 7343.
DAX hits one-month high
Yesterday’s speech by European Central Bank (ECB) president Mario Draghi prompted the DAX to surge, catapulting itself off the 50-day SMA to hit its highest level in a month.
The 12,420 zone, the high from late April and also September last year may provide some resistance. The uptrend from the June low is back in effect, and a pullback towards previous highs around 12,190 may provide a buying opportunity.
S&P 500 pushes higher at last
The S&P 500 has resolved its consolidation in favour of a move higher, with the price targeting 2940 and then 2960, the latter being the record high.
Potential areas of support are 2880 and then 2869 in the event of another drop.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices