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 slump amid risk-off move

FTSE 100, DAX and Dow are on the slide once more, with risk-off sentiment driving a move out of stocks.

FTSE 100 turning lower after recent retracement

The FTSE 100 has finally turned lower again, following a 50% retracement over the first half of the week. The decline seen overnight sees a return to the risk-off sentiment in play in the early hours of Monday morning.

We are likely to see further weakness from here, with a break below 7390 key in furthering the narrative that this index is heading back towards the ascending trendline that underpins a long-term symmetrical triangle. This bearish outlook holds unless we break through the 7516 level to bring about a double bottom formation.

DAX heads back towards Tuesday lows

The DAX has similarly been on the slide overnight, with the index slumping back towards Tuesdays low of 13,164. This looks like the beginning of another leg lower, with the index expected to decline back towards the 76.4% Fibonacci retracement level.

Nevertheless, even if we do see that break it is worthwhile noting that we remain within a wider uptrend that could kick in once again depending on how the coronavirus continues to drive risk sentiment. Thus, a wider bearish picture would only come into play with a break below 12,947.

Dow Jones heads lower after recent gains

A similar story for the Dow Jones, with recent gains being eroded by sharp losses overnight. Interestingly, the 28,448 low comes around the 76.4% support level, pointing towards a crucial area of support down below.

Should that support zone break we would need to see 28,122 broken to signal a wider bearish continuation signal coming into play. To the upside, a failure to break below this prior support - followed by a rise through the recent peak of 28,938 - would bring a more bullish outlook.


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.