Outlook on FTSE 100, DAX 40 and S&P 500 as expectations of a Fed hike in June diminish.

​​Outlook on FTSE 100, DAX 40 and S&P 500 as US government agrees to raise the country’s debt ceiling.

FTSE 100, DAX 40, and S&P 500 Analysis and Charts

Article written by IG Senior Market Analyst Axel Rudolph

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FTSE 100 approaches last week’s high

​The FTSE 100 is making its third attempt at breaking above last week’s high at 7,660 despite UK house prices falling for the first time since 2012. A rise above 7,660 would put the mid-May low at 7,679 on the map.

​Further up meanders the 55-day simple moving average (SMA) at 7,721 which may also be reached in the days to come.

​Upside momentum should remain in play as long as Tuesday’s low at 7,555 isn’t being slid through on a daily chart-closing basis.

FTSE 100 Daily Price Chart – June 7, 2023

DAX 40 nears the late May high at 16,080

​The DAX 40 is trying to reach a late May high at 16,080, following Monday’s bullish candlestick formation on the daily chart amid slight broad global risk-on sentiment.

​A rise and daily chart close above the 16,080 high would target last week’s 16,115 high, above which lies the May all-time record high at 16,333.

​Minor support sits around last Wednesday’s high and Tuesday’s low at 15,928 to 15,907. While it underpins, further upside may well be seen.

DAX 40 Daily Price Chart – June 7, 2023

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S&P 500 trades flirts with Monday’s nine-month high

​​On Monday, the S&P 500 rallied to a nine-month high at 4,299, close to its August 2022 peak at 4,325, both of which will remain in focus as long as risk-on sentiment prevails.

​​With more and more market players expecting the Fed not to raise rates at its June meeting, stock markets continue to look for a short-term bid.

​​Potential retracements should find minor support at Tuesday’s 4,262 low, below which sits far more significant support between the mid-to-late May highs at 4,234 to 4,214.

S&P 500 Daily Price Chart – June 7, 2023

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