FTSE 100 Extends Slide as UK Retail Sales Plunge and Nasdaq 100 Decline Persists
The FTSE 100 index continues to experience a downward trend as UK retail sales took a significant hit, dropping by 1.2% month-on-month in July. This decline was worse than expected, as analysts had predicted a 0.5% decrease. To make matters worse, this slump comes after a revised 0.6% rise in June. As a result, the UK blue-chip index is fast approaching its July low of 7,228 and is expected to find some support between this level and the March low of 7,204.
However, it is worth noting that there are some minor resistance points that the FTSE 100 may encounter. The 7,331 level, which represents the low point reached on March 24th, could provide some temporary resistance. Additionally, a more significant resistance area exists between the May and June lows, ranging from 7,401 to 7,433.
Meanwhile, the French CAC 40 index has also been affected by the global risk-off sentiment triggered by concerns about China’s growth and rising US yields. It is currently approaching its 200-day simple moving average at 7,146. Should it fall below this level, the June low of 7,105 may offer some minor support. However, more significant support can be found between the May and July lows at 7,083 to 7,053.
In the US, the Nasdaq 100 has been experiencing a decline throughout the summer, as risk-off sentiment persists due to rising longer-dated US bond yields. On Thursday, the index briefly reached levels last seen in mid-June and came close to touching the early June high at 14,663. Should it drop below this level, further minor support can be found around the late May high of 14,530.
These developments underscore the challenges faced by global markets and the concerns over the strength of economic recovery. With the UK retail sector taking a hit and Chinese growth worries affecting investor sentiment, the FTSE 100 and other major indices are in a delicate state. Investors will be closely monitoring these developments and looking for signs of stability moving forward.
In conclusion, the FTSE 100’s slide continues as UK retail sales drop more than expected. This decline, along with global risk-off sentiment, has contributed to a challenging market environment for investors. The Nasdaq 100 has also experienced a decline, reflecting the broader concerns within the market. As the situation evolves, market participants will be watching for signs of improvement and stability.
Disclaimer: This article provides a balanced view of the market situation and is for informational purposes only. It does not constitute investment advice and should not be relied upon for making investment decisions.
