The market arena witnesses a dynamic interplay of forces as the FTSE 100, DAX 40, and S&P 500 respond to diverse stimuli, shaping their respective trajectories.
FTSE 100: The FTSE 100 experienced a swift advance driven by rallying luxury good stocks and a prevailing risk-on sentiment. However, the pace of ascent has moderated, with the index maintaining a bid tone ahead of the impending Bank of England (BoE) monetary policy meeting. An ascent above the recent high of 7,685 could trigger a move towards the 11 January high at 7,694 and the mid-October peak at 7,702. Conversely, support levels reside near Friday’s high and Tuesday’s low, with key levels around 7,653 to 7,642 and further support at 7,609 and 7,587.
DAX 40: The DAX 40 index charted a mid-January surge, breaching its December record high to set a new peak at 17,016 on Tuesday. Despite the Eurozone reporting stagnant GDP growth in the fourth quarter and the IMF revising Germany’s 2024 growth forecast downwards, the DAX 40 displayed resilience. A potential retreat below Tuesday’s low at 16,913 might signal a corrective phase, with support at Monday’s low of 16,860. Resistance is anticipated near the breached January uptrend line at 16,976 and in the 17,003 to 17,016 range.
S&P 500: The S&P 500 navigates a consolidative phase following this week’s record high at 4,931, with profit-taking evident ahead of the US Federal Reserve (Fed) meeting. Last night, the index faced downward pressure as Alphabet, Microsoft, and AMD reported mixed results, dampening sentiment. A breach below Tuesday’s low at 4,899 could lead to a test of support levels near 4,885 to 4,878, encompassing last Tuesday’s high and Monday’s low. On the upside, strong resistance awaits at the recent peak of 4,931.
Conclusion: Traders scrutinize these indices against the backdrop of evolving economic conditions and central bank policies. With each index exhibiting distinct characteristics, market participants analyze key levels and fundamental indicators to navigate through the dynamic market environment.
