S&P 500, FTSE 100 Analysis and News
- S&P 500[1] | Registering Best Month Since November 2020
- FTSE 100[2] |25 or 50bps for the Bank of England
S&P 500 | Registering Best Month Since November 2020
The S&P 500 is on course to post its largest monthly rise since November 2020, up over 8%. A reminder that within our Q3 equity guide[3] we did highlight that in the top 10 worst H1 performances, Q3 did tend to mark a bounceback on average of over 7%. The best month of which had been for July.
Source: Refinitiv, DailyFX
The move has come despite the fact that inflation has not peaked in headline CPI and soft activity survey data has flagged a worrying growth outlook. That being said, Fed Chair Powell’s presser had been interpreted by the market as dovish, after the Fed Chair removed forward guidance and signalled that the Fed would be data dependent. Consequently, with data softening, markets have priced out aggressive rate hikes in favour of a 50bps rise for the September meeting. However, upcoming data in the weeks ahead will ultimately dictate the size of the next rate increase and thus market sensitivity to economic data will increase. As such, traders will be closely watching the upcoming PMI data as well as the latest NFP[4] report.
Markets Price Out Aggressive Rate Hikes
Source: CME
On the technical front, a break above the 100DMA opens the door toward resistance at 4180-4200. Meanwhile, support is situated at 4015 and 3930.
S&P 500 Chart: Daily Time Frame
Source: Refinitiv
FTSE 100 | 25 or 50bps for the Bank of England
The Bank of England will release their latest monetary policy report, the question heading into the decision is whether
