Weak Eurozone PMIs lead to a decrease in European Indices: FTSE 100, DAX 40, S&P 500
Stock Markets Face Pressure as Oil Prices Rise and Yields Increase
In the Face of risk-averse sentiment, FTSE 100 slips
The FTSE 100 is experiencing its third consecutive day of losses. This is because the price of oil is going up due to Russia and Saudi Arabia voluntarily cutting their supply. Additionally, rising yields are also putting pressure on sentiment and stock markets. There is a support line at 7,390, which used to be a downtrend line but is now acting as support because of inverse polarity. If the FTSE 100 falls below this line and Tuesday’s low at 7,388, it could reach the 7,300 region.
The Decline of DAX 40 remains in progress
The DAX 40 is also sliding. This time, it is due to weak Eurozone PMI data and a drop in German factory orders. In July, factory orders decreased by 11.7% compared to the previous month, which was worse than expected. This is the first drop in industrial orders since March and the sharpest decline since April 2020. If the DAX 40 falls below Tuesday’s low at 15,690, it may revisit the August lows at 15,545 to 15,469 in September.
The S&P 500 is slumping
The S&P 500 is starting to lose its upward momentum and is gradually declining from last week’s high of 4,540. This is happening because the price of oil and yields are increasing. Traders are eagerly awaiting the US ISM services PMI data to get a better understanding of the state of the US economy. There is minor resistance around the 4,500 mark, and the current September peak is at 4,540.