Dow Jones, S&P 500, Nasdaq 100 Price Analysis & News
- DAX | Resistance Curbs Recovery, ECB May Offer Support
- FTSE 100 | Fiscal Taps to be Unleashed in UK Budget
- CAC 40 | Index Remains Tilted to the Downside Below Key Fib
A relief rally across global equity markets with US equity futures firmly in the green and briefly hitting limit up. Despite Saudi Aramco looking to boost oil production to a record 12.3mbpd (9.7mbpd in March), Brent crude futures are up over 20% from yesterday’s low. However, the oil price war is likely to leave Brent and WTI crude vulnerable to set backs. Among the support to risk sentiment had been on reports that President Trump is mulling payroll tax cuts, however, this had been at odds with reports via CNBC that the White House is not ready to roll out specific economic proposals in its response to the coronavirus (Press conference expected 1700EST). Consequently, equity have pulled back from their intra-day highs, which in turn is seeing support filter into the Japanese Yen and US treasuries.
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DAX | Resistance Curbs Recovery, ECB May Offer Support
Failure for the index to make a break above 11000 puts the initial market view back towards 10500. A lack of notable positive developments brings the bounce into question (dead cat bounce?). However, all eyes will be on the ECB, where overdelivering on measures could be enough to curb further downside. (Possible ECB measures). For now, key support zone is situated at 10170-10200.
| Change in | Longs | Shorts | OI |
| Daily | -9% | -27% | -17% |
| Weekly | -1% | -16% | -8% |
DAX Price Chart: Daily Time Frame
Source: IG Charts
FTSE 100 | Fiscal Taps to be Unleashed in UK Budget
The FTSE 100 had been among the worst hit equity markets in yesterday’s rout given its sizeable exposure to the oil sector (Shell & BP). However, declines in the index came to a halt at the Brexit referendum low (circa 5737). Focus for UK asset will be on the budget released tomorrow, where it is expected that the Chancellor will unleash the spending taps.
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FTSE 100 Price Chart: Weekly Time Frame
Source: IG Charts
CAC 40 | Index Remains Tilted to the Downside Below Key Fib
Initial gains fading as the spread of the coronavirus continues to plague Europe. With the index struggling below the 76.4% Fibonacci retracement, risks remain tilted to the downside where a break below yesterday’s close (4686) could exacerbate the pullback in the index.
| Change in | Longs | Shorts | OI |
| Daily | -19% | -20% | -20% |
| Weekly | 5% | -18% | -5% |
CAC 40: Daily Time Frame
IG Charts
— Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
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