FTSE 100 and global stocks plunge after weak US Manufacturing

  • A plunge lower Wednesday for the FTSE 100, the UK’s broad, benchmark stock index, with global share markets also plummeting.
  • This has been in the wake of Tuesday’s very negative, US ISM Manufacturing data, highlighting a slowing US economy.
  • Concerns that the US economy is now being impacted by the global trade war and economic slowdown have seen US equity markets selloff aggressively, with the risk for the already vulnerable UK and European economies and share indices being hit hard.
  • The threat into mid-October is now or an even more significant breakdown for the FTSE 100.

FTSE 100 Future: Intermediate-term bearish shift

A very aggressive Wednesday plunge through 7165 for an intermediate-term shift to bearish.

This bearish activity keeps the threat lower for Thursday.

For Today:

  • We see a downside bias for 7052.5 and 7043; break here aims for 7021 and 7004/6999.5, maybe 6981.5 and 6962.
  • But above 7089 opens risk up to 7135.5 and 7185.5.

Intermediate-term Outlook – Downside Risks: We see a downside risk for 6962.

  • Lower targets would be 6835.5 and 6500/6479.5.
  • What Changes This? Above 7288.5 shifts the intermediate-term outlook back to neutral; above 7406 is needed for an intermediate-term bull theme.

Daily FTSE 100 Future Chart

FTSE 100

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest Related News

Stock indices stay vulnerable to further losses (FTSE forecast)

Global financial markets have shifted back to more of a “risk off” phase since the start of Q2 into April, with stock averages lower (see our recent reports on the DAX and S&P500Share indices did manage modest rebounds Thursday, after a more promising outlook was seen for the Oil price, with the Oil and energy sector heavy FTSE 100 index, particularly benefiting.Here we focus on… Continued

Stock averages form bases, aim higher (FTSE 100 focus)

Global share indices rebounded further Tuesday, with the US Congress apparently in agreement on the $2 trillion economic relief billGlobal stock averages have overcome through resistance levels, to form bases and signal a more positive outlook in the very short-term.This does NOT end the bigger bear market theme, but the threat has switched to further gains and stability in the near term, maybe into the… Continued

Not going down is the new going up! – FTSE 100 forecast

Global stock averages have stabilised over the past 1-2 days, and despite probes to new bear cycle lows, markets have NOT displayed the bearish, capitulation-type activity seen previously through March.This “not going down” could be viewed as “the new going up”, though we are far from indicating that any sustainable bottoms are in place.As we go into the European session Friday, the threat remains for… Continued

Stock indices trying to base, but still vulnerable

An erratic tone for global stock averages this week, as markets continue to attempt a shift away from the late February “risk off” panic, with rebound and basing attempts to start March.This reflected the multilateral intervention by Central Banks in reaction to the threat to the global economy from the spread of the coronavirus, with the Reserve Bank of Australian cutting interest rates by 0.25%,… Continued

Stocks in freefall (FTSE forecast)

Again, a very aggressive selloff in the past 24 hours for global stock markets as equity investors head for the hills, with buying of safe haven bonds.The driver remains fears of a significant the global economic slowdown from the wider spread of the coronavirus outside of China.Global equity averages are plunging through Q4 2019 support levels and even lower supports.Here we focus on the future… Continued

Forex Brokers in your location