European Open: FTSE falters around 7500, German CPI reports in focus

Asian Indices:

Australia's ASX 200 index rose by 49.7 points (0.71%) and currently trades at 7,015.20
Japan's Nikkei 225 index has risen by 344.44 points (1.24%) and currently trades at 28,223.40
Hong Kong's Hang Seng index has fallen by -179.51 points (-0.9%) and currently trades at 19,843.71
China's A50 Index has fallen by -84.94 points (-0.63%) and currently trades at 13,386.19

UK and Europe:

UK's FTSE 100 futures are currently down -16.5 points (-0.22%), the cash market is currently estimated to open at 7,410.81
Euro STOXX 50 futures are currently up 23 points (0.64%), the cash market is currently estimated to open at 3,593.51
Germany's DAX futures are currently up 93 points (0.72%), the cash market is currently estimated to open at 12,985.99

US Futures:

DJI futures are currently up 105 points (0.33%)
S&P 500 futures are currently up 65 points (0.52%)
Nasdaq 100 futures are currently up 15.75 points (0.39%)

It proved to be a turnaround Tuesday for share markets across Asia, although China was the exception. Whilst Wal Street continued lower yesterday, losses were limited which shows selling pressures are receding. And that helped to lift sentiment in the overnight Asian session

This has seen futures for European and US indices rise ahead of the open, although the FTSE is the odd one out and currently trades -0.22% lower. Volatility remained very low for currency pairs and commodities overnight.

A host of regional inflation reports for Germany are released at 09:00 – and that can potentially provide a lead on where CPI could be headed for Germany as a whole and the Euro area. One has just been released, which saw annual inflation for Nordhein-Westfalen rise to 8.1% although is only rose 0.3% m/m, down from 1.1% previously. German CPI is then released at 13:00 BST

FTSE 100 daily chart:

The FTSE’s latest rally failed to test the 7600 handle, and after a period of consolidation at the highs momentum has now turned lower. This is now its third marginally lower high since the February high, which now has us on guard for at least a dip lower – with the potential for a move down to 7200.

A bearish hammer on Thursday and bearish outside day on Friday show resistance around 7230, and today’s bias remains bearish whilst prices remain beneath it. We’d consider fading into retracements within Friday’s range for an initial move to 7350 – a level which could prove pivotal. Whereas a break below the 200-day eMA assumes bullish continuation towards the 7200 low.

FTSE 100 trading guide

Economic events up next (Times in BST)

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

Open a Forex.com account, or log in if you’re already a customer.
Search for the pair you want to trade in our award-winning platform.
Choose your position and size, and your stop and limit levels.
Place the trade.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Products and services available depend on your location and the entity holding your account. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.