CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

FTSE 100, DAX and Dow regain ground, as the US leads the way

FTSE 100, DAX and Dow put an end to last week’s sharp losses, with US markets outperforming on the expectation of FOMC stimulus.

FTSE 100 forming a base amid stimulus hope

The FTSE 100 appears to be in a consolidation phase, in what could turn out to be a bottom given the break through trendline resistance. A break through the 6773 resistance level would provide greater confidence of further upside, with a decline below 6611 signalling a continuation of this current consolidation zone.

Hope of a worldwide stimulus plan is helping drive markets higher for the time being. That impact is lessened in the UK compared with the US, yet we have certainly seen the previous declines grind to a halt.

DAX declines turn to consolidation

The DAX has similarly slowed its decline, with the index largely consolidating since Friday's lows. We have continued to create lower lows, with the subsequent rally bringing about a move into the 76.4% Fibonacci retracement at 12,077.

We would need to see a rise through the 12,217 level to gain confidence of a more bullish period, with investors clearly skeptical of exactly how much stimulus the European Central Bank (ECB) can really introduce given the current rock-bottom rates and ongoing quantitative easing programme.

Dow Jones breaks through trendline resistance to surge higher

The Dow Jones managed to post a huge 5% gain yesterday, with the price following up a trendline break with a sharp move higher. Markets are now expecting 1% of rate Federal Reserve (Fed) cuts this year, and this is likely driving much of the differential we are seeing between US and European markets.

The pullback we have seen overnight looks like a precursor to further upside, with a rise through 26,766 providing a new bullish signal. To the downside, we would need to see a break below the 25,858 level to bring about a more bearish picture once more.


The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

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, 1.2 on the Germany 40, and 0.4 on the US 500
  • 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, 1.2 on the Germany 40, and 0.4 on the US 500
  • 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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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

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.