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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Indices fall sharply on new Covid variant

Stock markets are already struggling with thin liquidity but the news out of South Africa has sparked a major move to the downside.

FTSE 100

Hopes of a continued recovery in the FTSE 100 have been dashed as the new Covid variant spooks markets.

The price has dropped sharply, moving below the 50-day simple moving average (SMA) of 7194 for the first time and reviving the downward move from 7400.

Thin liquidity may well amplify the move, and bring 7100 and then the 200-day SMA at 7037 into view.

DAX

The new Covid variant has turned a modest pullback into something more serious for the DAX, driving the price down below the 100- and 50-day SMAs (15,686 and 15,661 respectively).

Further declines target the 200-day at 15,414, and then down towards the vital 15,000 area, which saw buyers emerge several times this year.

Dow

US futures were ticking higher overnight until the Covid variant news struck, and this has seen the Dow fall to its lowest level in around six weeks.

The price has returned to the 50-day SMA at 35,301, filling the gap between the two that had been so evident earlier in the month. Additional declines target 34,560 and then the 200-day SMA at 34,406, and then 33,900.

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