FTSE 100 on the Decline, Nikkei 225 Hits 34-Year High

The FTSE 100 is on the decline, and the S&P 500 is cautious. Nikkei 225 hits a 34-year high. Global markets react to economic data.

Financial markets worldwide are experiencing varied movements as the FTSE 100 and S&P 500 remain on hold in anticipation of key economic indicators, while the Nikkei 225 surges to a 34-year high.

FTSE 100 Retreats Amid Uncertainty

The FTSE 100 shows signs of retreat ahead of crucial economic data releases. Market participants anxiously await Thursday’s US Consumer Price Index (CPI) and Friday’s UK Gross Domestic Product (GDP) readings, contributing to jitteriness in the financial landscape.

Analysts suggest downside pressure will persist until the index surpasses Monday’s High at 7,725. Resistance levels are identified between the September and December highs, ranging from 7,747 to 7,769.

A breach of Monday’s low at 7,635 could signal further declines, potentially reaching the mid-October low at 7,584 and the significant 200-day simple moving average (SMA) at 7,575.

FTSE 100 Bearish Sentiment

Currently, 51% of clients are net long, with daily changes showing a 20% increase in long positions, a 14% decrease in shorts, and a 1% change in open interest. Weekly changes indicate a 12% rise in longs, a 3% drop in shorts, and a 4% change in open interest.

FTSE 100 on the Decline, Nikkei 225 Hits 34-Year High

Nikkei 225 Reaches Heights Last Seen in 1990

In contrast, the Nikkei 225 has experienced a remarkable surge, reaching unprecedented levels since January 1990. This surge is attributed to slowing inflation in Japan, weakening the yen. Furthermore, market analysts anticipate that the Bank of Japan (BoJ) will uphold its ultra-loose monetary policy for an extended period.

The psychological milestone of 35,000 marks the next upside target for the Nikkei 225, surpassing the December 1989 all-time peak of 38,957.

Investors eyeing potential corrections expect support levels around 33,865 to 33,815, corresponding to late November and December highs.

As global investors closely monitor economic indicators and central bank policies, the divergent movements in significant indices highlight the dynamic nature of the current financial landscape. The FTSE 100 and S&P 500 remain in a holding pattern, while the Nikkei 225’s impressive performance adds an intriguing dimension to the global market narrative.

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