FTSE 100, DAX 40, and Nasdaq 100 Hold the Line

Stay informed on FTSE 100, DAX 40, and Nasdaq 100 movements with our latest market analysis and trends coverage.

Global markets are navigating a complex landscape as the FTSE 100, DAX 40, and Nasdaq 100 strive to maintain their positions above last week’s lows. Here’s a closer look at the current status and analysis of each market:

FTSE 100 Faces Decline Amidst Rate Cut Expectations

The FTSE 100 index is declining, influenced by scaled-back rate cut expectations. The index approaches its January lows, ranging between 7,648 and 7,641, providing a potential support level. Analysts suggest that while downside pressure persists, a revisit to Monday’s intraday high at 7,696 could be in the cards. Surpassing this level may rekindle interest in the mid-December high at 7,725, with resistance noted between the September and December highs at 7,747 to 7,769. Conversely, breaching the support zone may lead to a drop to the mid-October low at 7,584, coupled with the 200-day simple moving average at 7,575.

FTSE 100, DAX 40, and Nasdaq 100 Hold the Line

DAX 40 Attempts to Recover After Initial Slide

The DAX 40 index initially slid to 16,444 on Friday following a Eurozone inflation reading and stronger-than-expected US nonfarm payrolls. Hopes for substantial rate cuts reignited, propelling US equity indices upward and showcasing the market’s resilience. The DAX 40 must surpass Friday’s Dragonfly Doji high at 16,648 to establish an interim bottom. If successful, the index could reach recent highs ranging from 16,809 to 16,812, potentially shifting attention to the December record high at 17,003. Identified support levels lie at Wednesday and Thursday’s lows at 16,500 to 16,477, preceding last week’s low at 16,444.

Germany 40 BEARISH

Recent data indicates that 78% of clients are net short on the Germany 40 index. There have been notable changes in longs, shorts, and open interest on both daily and weekly scales.

Nasdaq 100 Maintains Position Above Last Week’s Low

The Nasdaq 100 experienced a decline at the start of the year due to reduced rate cut expectations and heightened risk-off sentiment related to tensions in the Middle East. Approximately 3.5% dropping, the index reached a one-month low at 16,178, closely approaching the highs of November 22 and 29 at 16,167 to 16,126. Analysts anticipate these levels will offer support if tested. A bullish move requires a rise above Friday’s high at 16,420, potentially bringing the 20 December low of 16,552 back into focus. Investors are closely monitoring developments to gauge the index’s trajectory.

In summary, global markets remain dynamic as investors navigate uncertainties. Market participants closely monitor economic indicators and geopolitical developments for potential impacts on market dynamics, directing their attention toward key support and resistance levels.

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