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 City Index

You can easily trade with City Index by using these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.