FTSE 100 Aims for Recent High Amid Shifting Sentiment
Following a brief dip to 7,600 levels triggered by Bank of England’s suggestions of delayed interest rate cuts, the FTSE 100 is rebounding towards Wednesday’s peak at 7,690. The upbeat sentiment, fueled by robust US earnings and general risk-on mood, is pushing the index higher.
If the FTSE 100 surpasses the 7,690 mark and the January 11 high of 7,694, it could target the mid-October peak around 7,702, with further potential towards July and September highs at 7,723 to 7,747. While support lies at last Friday’s high of 7,653 and Tuesday’s low of 7,642, the medium-term uptrend remains intact as long as this week’s low at 7,600 holds.
DAX 40 Approaches All-Time High Amid Positive Earnings Outlook
The DAX 40 swiftly recovered from Thursday’s low of 16,782 and is on the verge of revisiting its current record high at 17,020. Bolstered by strong earnings from tech giants Amazon and Meta Platforms, US indices surged higher, providing additional momentum to the DAX.
With the 17,020 level as a near-term target, the index could eye 17,100 in the absence of a bearish reversal below Thursday’s low. Support levels sit at the early January high of 16,960 and the late January peak of 16,925.
S&P 500 Reclaims Record Highs Driven by Tech Sector Strength
Despite a brief bearish retreat from Monday’s peak of 4,931 due to adjusted Fed rate cut expectations, the S&P 500 swiftly rebounded. Strong performances in the US tech sector propelled the index from Wednesday’s low of 4,842 to Thursday’s new record high of 4,941, hinting at further upside towards the psychological barrier of 5,000.
Key support levels lie between Tuesday’s low of 4,899 and the late January high of 4,903, providing a solid foundation for potential further gains, especially ahead of the highly anticipated US Non-Farm Payrolls report.
S&P 500 Chart
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This article is inspired from DailyFX Article, which was prepared by Axel Rudolph,IG Senior Market Analyst. https://www.dailyfx.com/analysis/ftse-100-resumes-its-advance-dax-40-and-s-p-500-near-record-highs-20240202.html