​​ FTSE 100, DAX 40 and Hang Seng Drop on Worse-Than-Expected China PMI Data

Article Written by IG Senior Market Analyst Axel Rudolph

FTSE 100, DAX 40, and Hang Seng Analysis and Charts

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​​​FTSE 100 slumps on oil price weakness

​The FTSE 100 is trading in two-month lows on a weaker oil price and has slid through the 200-day simple moving average (SMA) at 7,531 for the first time since March.

​The early January low at 7,412 represents the next downside target. Below it the December and 24 March lows can be spotted at 7,331 to 7,296.

​Resistance above the 200-day SMA sits at last week’s low at 7,556 and also at the 7,587 22 March high.

FTSE 100 Daily Price Chart – May 31, 2023

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DAX 40 remains under pressure as China manufacturing PMI drops

​The DAX 40 continues to slide on the back of weaker Asian stock indices as China manufacturing PMI unexpectedly declines.

​The German stock index weighs on its March-to-May uptrend line at 15,798. A fall through this level would target the key 15,723 to 15,659 support zone. It consists of the May lows and the 55-day simple moving average (SMA).

​If slipped through on a daily chart closing basis, a medium-term top may be formed with the 15,000 region being back in sight.

​Minor resistance can be found at the mid-May low at 15,854 and at Tuesday’s 15,883 low.

Dax 40 Daily Price Chart – May 31, 2023

​Hang Seng drops by over 20% from its January high

​China’s worse-than-expected May PMI data adds to the list of economic downside surprises witnessed so far this year and provides yet another validation of more subdued growth in the world’s second-largest economy.

​The Hang Seng is thus trading around 10% lower than at the start of the year and has fallen by over 20% from its January peak at 22,803.

​Further downside targets are the 24 November high at 17,763 and then the 22 November low at 17,293, ahead of the late November trough at 16,813.

​Resistance above the two-week accelerated downtrend line and last Thursday’s low at 18,470 to 18,499 sits at the March low at 18,827.

Hang Seng Daily Price Chart – May 31, 2023

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