Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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. 77% 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.

Rout in FTSE 100, DAX 40 and S&P 500 continues

​Outlook on FTSE 100, DAX 40 and S&P 500 00 ahead of next week’s FOMC meeting.

​​FTSE 100 continues its descent

The FTSE 100's decline on the back of higher-than-expected US CPI data on Tuesday, which made investors fear that the Federal Reserve (Fed) will need to pursue a more aggressive tightening policy to combat inflation, is ongoing.

The decline in UK retail sales, the biggest so far this year with a drop of 1.6% month-on-month in August following a 0.4% rise in July, should also exert downside pressure on the UK stock market. The data came in much worse than an expected 0.5% drop, with rising cost of living prices weighing on consumer spending.

The index topped out at 7,515 on Tuesday when it formed a bearish engulfing pattern on the daily candlestick chart and so far tumbled to its breached one-month resistance line at 7,228. A slide through this level would push the 8 September low at 7,174 and also the 1 September trough at 7,131 to the fore.

Today minor support may be found along the breached one-month resistance line, now because of inverse polarity support line, at 7,231 while resistance comes in between the 6 September high at 7,325 and the 55-day simple moving average (SMA) at 7,344 ahead of the 200-day SMA at 7,402.

DAX descent has further to go

The DAX 40’s swift sell-off from Tuesday’s 13,570 high has further to go as the index follows US and Asian markets lower and as the IMF downgrades its growth forecast for 2023 and the World Bank warned of a global recession next year, prompted by the wave of tightening central banks.

The index formed a bearish reversal candle on Tuesday and is now trading below its September support line at 12,870 with the early September lows at 12,688 to 12,596 being in focus. Failure there would engage the July lows at 12,432 to 12,386.

Good resistance can now be found between the 2 September high and the 55-day SMA at 13,057 to 13,178. Above the 55-day SMA minor resistance can be seen between the early August low and late August high at 13,334 to 13,376.

S&P 500 trades in two-month lows

The S&P 500’s rapid descent from Tuesday’s 4,155 high, to 7% so far by close, is taking the index to its 3,720 July low as investors brace for a large US rate hike at next week’s Federal Open Market Committee (FOMC) meeting and worry about the impact it and further tightening will have on the US economy.

Furthermore, shares of companies such as Hilton Food Group took a massive plunge on Thursday, down 23.8%, having issued a profit warning earlier which was attributed to profit falls due to higher costs from inflation as opposed to falls in revenue.

FedEx also warned last night about further weakness in the economy and is down around 16% in after-hours trading.

The prospect of an aggressive response from the Fed to soaring inflation has pushed the S&P 500 to a two-month low with the 4 July high at 3,853 representing its next downside target.

Further down beckon the June and July lows at 3,720 to 3,636. Resistance above the 3,884 to 3,904 early September lows can be spotted at yesterday’s high at 3,958.

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.