FTSE 100, DAX and Dow likely to head lower yet again
FTSE 100, DAX and Dow expected to decline yet again, with overnight consolidation unlikely to last.
FTSE 100 looks primed for another leg lower
The FTSE 100 saw another bout of sharp declines yesterday, with the index falling back into levels not seen in over a year. Given that much of the downside seen yesterday was a response to growing coronavirus cases in Europe, it is likely that those announcements will increase in the daytime, and ease off overnight.
With that in mind, further announcements look likely, with losses expected to persist for stocks. The overnight consolidation looks like the setup seen yesterday, with the price expected to break lower before long. Watch for a decline below the 6911 low to signal the beginning of that next bearish move, with shorts expected to hold dominance as we continue to see the coronavirus spread throughout the western world. A break through the 7201 level would be required to negate this bearish outlook.
DAX sell-off pauses, yet bearish picture remains
The DAX has similarly been consolidating overnight, coming off the back of a big decline yesterday.
This looks to be a setup that is consistent with yesterday’s price action, with a breakdown below 12,611 providing us with another sell signal for the DAX. Only a break through 13,162 would bring about a bullish outlook for this index.
Dow Jones expected to slump once again
The Dow Jones consolidation seen overnight highlights the very similar picture seen across all three markets.
With that in mind, a break below 26,997 points towards the beginning of another breakdown, as we continue to see market fear express itself in stock market weakness. A break through 28,249 would be required to negate this bearish outlook.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.