FTSE 100 plunges as UK inflation spikes, revealing economic turmoil. Stay informed on market trends and potential impacts.
FTSE 100 Slumps Amid Unexpected Rise in UK Inflation
The FTSE 100 dropped on Wednesday following the December UK inflation data release. Surprising analysts, inflation reached a robust 4.0%, with core inflation soaring to 5.1%. The index, which had already slid below the 200-day simple moving average (SMA) at 7,570 on Tuesday, now eyes the 7,450 mark. Analysts note that if the index breaches this level, it may find support at the early October and late November lows, ranging from 7,384 to 7,383. Minor resistance is observed around the 7,493 mark, corresponding to the December 11th low and the psychological threshold 7,500.
FTSE 100 Bears on the Rise
Bearish sentiments dominate the FTSE 100, with 74% of clients adopting net long positions. Daily statistics indicate a 30% increase in long positions and a 23% reduction in shorts, contributing to an overall rise in open interest.
FTSE 100 Plummets on Surging UK Inflation Rates
DAX 40 Hits Six-Week Low Amidst Hawkish Central Bank Talk
The DAX 40 index extended its decline, marking the third consecutive day of losses and reaching a six-week low. Hawkish central bank rhetoric and diminishing expectations of rate cuts contributed to the slide. Analysts identify the 55-day simple moving average (SMA) at 16,294 as the next potential downside target. Analysts suggest that the early January and Tuesday’s lows at 16,444 to 16,471 may act as minor resistance. Absent a bullish reversal surpassing Thursday’s low at 16,535, the medium-term trend appears bearish.
Nasdaq 100 Faces Pressure Amidst Mixed Earnings and Cautious Fed Remarks
Downward pressure grips the Nasdaq 100 as mixed US earnings and cautious remarks from US Federal Reserve (Fed) governor Waller fuel uncertainty. In his speech, Waller advocated for a careful approach to rate cuts and discussed reducing quantitative tightening without providing a specific timeline. The index may revisit Tuesday’s low at 16,674, with potential slips leading to the January 11th low at 16,614 and the December 20th low at 16,552. In a rebound, minor resistance is anticipated between Friday and Monday’s lows at 16,726 to 16,743. Failure to break through could keep this week’s highs at 16,897 to 16,912 in play. The Nasdaq 100 remains under the shadow of uncertainty as traders closely monitor market developments.