Equity Analysis and News
- US Equities Erase YTD Gains, Nasdaq in Correction
- Global Growth Prospects Deteriorating
- Risk Off Sentiment to Persist
See our Q4 forecasts to learn what will drive price action through the quarter
| Price | 200DMA | RSI | Open Interest | IG Sentiment | |
|---|---|---|---|---|---|
| Europe | |||||
| FTSE 100 | 6928 | 7447 | 15 | 608,563 | Mixed |
| DAX | 11189 | 12483 | 17 | 98,408 | Bearish |
| CAC 40 | 4976 | 5369 | 14 | 280,944 | Mixed |
| US | |||||
| S&P 500 | 2656 | 2766 | 22 | 2,790,639 | Mixed |
| DJIA | 24583 | 25132 | 23 | 89,815 | Mixed |
| Nasdaq 100 | 7129 | 7133 | 34 | 259,545 | - |
US Equities Erase YTD Gains, Nasdaq in Correction
Another plunge in US equity markets saw the both the S&P 500 and DJIA erase its gains for year, while the tech sell-off led to the Nasdaq 100 moving into correction territory, dropping 12% from the record high in August after posting its biggest one-day decline since 2011. Despite US authorities suggesting that this correction in equity markets is healthy and Fed officials are adamant that the underlying economy remains strong. Concerns have been growing for the US economy with weakness in the rate sensitive housing sector continuing its descent after the latest new home sales data reported a 5% decline, following a 3% drop in August.
Global Growth Prospects Deteriorating
Warnings signs are on the rise that global growth prospects are deteriorating amid the US-China trade war. This has been reflected in the South Korean KOSPI index, typically seen as a barometer for global trade growth given the country’s large export orientation, which has now moved into bear market territory after seeing its sharpest decline since the financial crisis.
Risk Off Sentiment to Persist
Fragile sentiment in global markets may indeed persist as defensive sectors continue to outperform cyclical sectors. The spread between the US industrial Sector ETF and US Consumer Staples ETF has fallen to the lowest level since Sep 2017.
Source: Refinitiv
KEY TRADING RESOURCES:
- Just getting started? See our beginners’ guide for FX traders
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- See our Q4 forecasts to learn what will drive FX the through the quarter.
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
