Indices tumble as China concerns flare
The new week has begun with heavy losses, as stock markets retreat on renewed China concerns, relating to the Evergrande property group.
FTSE 100
Early losses have taken the FTSE 100 to its lowest level since mid-July, heading rapidly towards the 200-day simple moving average (SMA) at 6893.
So far the sellers are firmly in charge, and if the 200-day is lost then 6800, which acted as lows in May and July, is the next area to watch to the downside.
Buyers will be looking for a recovery above 7000, but it seems unlikely that this will happen today.
DAX
Now embracing 40 stocks, the DAX is nonetheless on the back foot like the others, giving back all the ground gained since late July. Below 15,278 the next target is the July low at 15,047.
Overall it looks like the downward move is likely to prevail overall, with buyers needing a recovery above 15,700 to provide a sign that a bounce is in play.
Dow
US markets have begun the week firmly on the back foot, and look set for further losses.
The next level to watch to the downside appears to be 33,960, and intraday rallies are likely to be the cue for further selling unless we see a recovery above 34,707.
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