S&P 500, FTSE 100 Outlook: Trade War Deadline, Brexit Vote, Fed Powell Testimony In Focus

EQUITY ANALYSIS AND NEWS

• S&P 500 | Eyes on FOMC, NFP and Apple Earnings
• DAX | Firm Chinese Data Needed to Push DAX Higher

Source: Thomson Reuters, DailyFX

S&P 500 | EYES ON FOMC, NFP AND APPLE EARNINGS

The S&P 500 continues to march higher with the index adding another 0.7% for the week. The index remains within its uptrend, which in turn saw the S&P move within touching distance from its all-time peak, although, failure to print fresh highs saw the index pullback slightly. Interestingly the risk barometer, which consists of a spread between cyclicals and defensive stocks (XLI vs XLU ETF) has edged lower, which in turn raises the risk of a near-term pullback in the index. Focus next week will be on the Federal Reserve rate decision with questions asked over their take on the Q1 GDP data. Alongside this, eyes will be on the latest US jobs report, while earnings season will see Apple report.

DAX | FIRM CHINESE DATA NEEDED TO PUSH DAX HIGHER

While the macro outlook for the Eurozone remains fragile, the DAX continues to go on from strength to strength, with the index outperforming its European counterparts. Among the supportive factors behind this, has been the drop in the Euro to near 2yr lows, consequently, helping German exporters. With many investors looking for a potential recovery in the Eurozone outlook eyes will be on the Eurozone GDP report, while an upside surprise in the Chinese Manufacturing PMI could be enough to push the DAX to better levels.

DAX PRICE CHART: DAILY TIME FRAME (DEC 2017-APR 2019)