Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

FTSE 100, DAX 40 and S&P 500 begin week on a positive footing

Outlook on FTSE 100, DAX 40 and S&P 500 following higher-than-expected US CPI data, ahead of further US Q3 earnings.

Indices Source: Bloomberg

​​FTSE 100 remains bid ahead of new UK chancellor statement

The FTSE 100 begins the week on a positive footing, as market players expect the new UK Chancellor of the Exchequer, Jeremy Hunt, to push back on previously announced tax cuts and bring forward tax rises in order to try and calm financial markets and balance the books.

For technical analysts the current recovery comes as no surprise since market sentiment had been extremely bearish over the last few weeks, especially last week, and because short positions were at very elevated levels, increasing the risk of a squeeze being witnessed.

Positive divergence on the daily Relative Strength Index (RSI) could also be made out and still points to higher levels likely being seen this week. Positive divergence occurs when the index makes a new price low compared to a previous low, but the indicator, in this case the RSI, makes a higher low, thus not confirming the price low and more often than not leading to a bullish reversal in price.

The two-month downtrend line at 6,953 is thus in sight, a rise above which would put the early September low and the early October high at 7,104 to 7,131 back in play. En route lie Thursday’s high at 6,978 and the minor psychological 7,000 mark.

Slips should find minor support at Friday’s 6,826 low and further support at the early October low at 6,783.

FTSE 100 chart Source: ProRealTime

DAX 40 remains bid ahead of German ZEW data out Tuesday

The DAX 40’s initial reaction to the higher-than-expected US Consumer Price Inflation (CPI) data Last week, like that of its European and US peers, was to drop before short covering amid extremely negative market sentiment propelled it to last week’s high at 12,680, only for disappointing US third quarter (Q3) earnings to push it back down again.

So far, the index remains bid above its breached two-month downtrend line at 12,346, though, with last week’s high at 12,680 in sight ahead of Tuesday’s German ZEW economic sentiment data release.

A rise above 12,680 would engage the 12,704 early October high, a daily chart close above it would mean that at least a medium-term bottom is in the process of being formed, targeting the early September and 20 September highs at 12,940 to 13,057.

DAX 40 chart Source: ProRealTime

S&P 500 hovers above its recent lows as US earnings season continues

The S&P 500 dropped last week amid concerns about tighter monetary policy, weaker earnings and rising inflation, and the accompanying fears of a global recession.

It did manage to close the week off around the 200-week simple moving average (SMA) at 3,605, above which it is expected to open this week ahead of Monday’s BNY Mellon and Bank of America Q3 earnings.

From a technical perspective last week’s bullish reversal on the daily candlestick chart has further to run with last week’s high and the late September high at 3,721 to 3,737 representing the first upside target zone, followed by the 3,807 early October peak.

Good support can now be found between the 27 September to early October lows at 3,611 to 3,576.

S&P 500 chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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 and quarterly summary.

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
  • 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
  • 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

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false" style="--live-prices-table-rows:5" >


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

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.