FTSE 100 Show Resilience, In Focus for a Positive Year-End Close

As the financial markets gear up for the year’s last trading day, the FTSE 100 and DAX 40 show resilience and determination to end 20XX positively.

FTSE 100 Consolidates Below September and December Highs

Despite UK house prices experiencing an unexpected decline in December, the FTSE 100 remains robust, consolidating just below its September and December highs at 7,747 to 7,769. The index, poised for a year-end flourish, will close the year even as markets shut down early.

The impact of falling house prices on the FTSE 100 seems minimal as trading starts, with Thursday’s low at 7,705 providing a solid support level. This support and optimistic market sentiment are expected to maintain immediate upside pressure. Investors are eyeing the 7,747 to 7,769 region as potential upside targets, setting the stage for a possible breach of the 7,800 mark.

However, a slip through the support at 7,705 could trigger a retest of the 7,702 October peak. Below this level, technical analysis indicates the presence of the November-to-December uptrend line at 7,664, suggesting a critical support zone.

FTSE 100 Show Resilience, In Focus for a Positive Year-End Close

DAX 40 Seeks Year-End Highs

The DAX 40 index has been a standout performer throughout the year, boasting an impressive 19% gain year-to-date. As the year draws to a close, the index is pushing to finish on a high note, targeting last week’s and this week’s highs at 16,809 and 16,812. Should this level be surpassed, market watchers anticipate a potential retest of the December record high of 17,003.

Support for the DAX 40 is evident below Thursday’s level at 16,686, with last week’s low at 15,595 as a crucial support zone. Analysts suggest breaching this support level would be the only factor bringing the July peak at 16,532 back into consideration. Nevertheless, investors anticipate the July peak will provide substantial support even in such a scenario.

In conclusion, as the FTSE 100 and DAX 40 gear up for the last trading day of the year, market participants are optimistic about the potential for further gains. The resilience shown in the face of economic uncertainties and unexpected data highlights the underlying strength of these indices, providing a positive outlook as the financial world bids farewell to the current year.

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