Hawkishness from the BoJ weighs on the Nikkei 225, but the FTSE 100 and DAX 40 defy expectations with their positive performance
Stock Market Update: FTSE 100, DAX 40, and Nikkei 225
Last week, the FTSE 100 did better than other stock markets in Europe and the US. It ended the week with a small increase of 0.2%, while the others were in the red. This happened because the prices of oil and gas went up, which helped the FTSE 100. The FTSE 100 is expected to break through its downtrend line from July to September at 7,485. It might also reach the high point from early September at 7,524. If it keeps going up, it could even reach the peak from early July at 7,532. There is also a moving average at 7,638 that could act as a barrier.
There are some support levels to watch out for. One is the moving average at 7,475, and another is the low point from early August at 7,437. There is also a low point from late August at 7,419.
The DAX 40 had a tough week, dropping by 1.2%. This happened because people were worried about the economy in the Euro Zone, and the value of the US dollar and yields were going up. The DAX 40 reached a low point for the past two weeks at 15,575 before stabilizing on Friday. If the DAX 40 can stay above this low point, it might go back up to the high point from August 24 at 15,895. There is also a downtrend line from July to September at this level. If the DAX 40 can close above the high point from Friday at 15,787, it might signal a positive change in the market. There is also a moving average at 15,927 that could act as a barrier.
Possible Support Levels
If the DAX 40 falls below the low point from last week at 15,575, it might go down to the moving average at 15,514. There is also a low point from August at this level.
The Nikkei 225 had a rough start to the week, dropping by half a percentage point. This happened because the governor of the Bank of Japan said that the negative rates policy might end by the start of 2024 if wages keep going up. The Nikkei 225 reached a moving average at 32,411.9, which acted as temporary support. Below this level, there is an uptrend line from August to September at 32,294.0, which is expected to hold.
What to Watch For
For the Nikkei 225 to start going up again, it needs to go above the high point from Monday at 32,759.0. If it can do this, it might be a sign that the market is starting to recover.