The bears took hold of most indices on Tuesday forcing stocks down; analysts see new gains Wednesday.
Exchanges across most of the world were forced lower as countries try to stabilize their currencies through fiscal policy. The worst cumulative damage for stocks over the last few days was felt in the U.S. Wednesday’s losses were seen on London’s main UK100 [FTSE] as socks fell 2.5%, the USA2000 [RUSSEL - US] dropped from 1222.8 to lows of 1203.35, after similar losses on Tuesday. The USA500 [S&P] slipped nearly 1.7% to 2041 and the USA30 [Dow], which reached record highs on 2 March has been volatile over the last week, finally dropping on Tuesday to 17654.
Though the weight on U.S stocks is due to an ever-strengthening dollar, and in the EU due to the ECB’s QE plan, many analysts see European trading on Wednesday as the turnaround point for European stocks with Reuters reporting that European indices will rise in opening trade. The forecasts are as follows from London Capital:
UK100 currently at 6695 is expected to gain 29 points
Germany30 [DAX] starting trade at 11530, is predicted to rise 47 points
France 40 [CAC] opening at 4898 is forecast to see 20 points gain
The U.S stocks however are battling with lack of confidence from investors as the strong dollar bites on export profits through disadvantageous foreign exchange rates.
MT4 Chart: Germany30 [DAX]
MT4 Chart: UK100 [FTSE]
MT4 Chart: USA500 [S&P]
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