. Daily Index Analysis - FTSE 100 Plummets, European Stocks Surge on ECB Hope

Daily Index Aanlysis – FTSE 100 Plummets, European Stocks Surge on ECB Hope

Daily Index Aanlysis – FTSE 100 Plummets, European Stocks Surge on ECB Hope

02 Oct 2023

Introduction:

In the realm of global indices, Asian markets exhibit a mixed picture with a backdrop of rising oil prices and Treasury yields. In Europe, shares wrap up the worst quarter in a year with minor gains, with futures contracts reflecting a cautious outlook. Meanwhile, in the U.S., futures dipped following an impactful inflation report, marking the end of a challenging third quarter for equities.

Market In Focus for today – FTSE 100

The benchmark index still recorded its worst quarter in a year, but European equities increased on Friday as a decline in euro zone inflation in September raised optimism that the European Central Bank could suspend its interest rate hikes.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7601.28 | Negative Crossover | Bearish
  • MA 20: 7618.45 | Negative Crossover | Bearish
  • MA 50: 7598.40 | Negative Crossover | Bearish

Simple:

  • MA 5: 7608.92 | Negative Crossover | Bearish
  • MA 20: 7625.74| Negative Crossover | Bearish
  • MA 50: 7614.07 | Negative Crossover | Bearish

RSI (Relative Strength Index): 42.78 | Neutral Zone | Neutral

Stochastic Oscillator: 37.21 | Sell Zone | Negative

Resistance And Support Levels: 

  • R1: 7654.4 | R2: 7750.6
  • S1: 7568.7 | S2: 7409.8

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 7520.6 | Take Profit: 7409.8 | Stop Loss: 7602.2.

Elsewhere in the Indices Market

Asian markets mix as Oil and Treasury yields climb.

The Shanghai composite is up at 0.10%. Overall, the Singapore MSCI is down 0.60% to 283.52. Over in Hong Kong, the Hang Seng Index is up by 2.51% to 17,809.66. In Japan, the Nikkei 225 was down 0.31% to 31,759.88, while the Topix index was down 0.39% to 2,314.44. South Korea’s Kospi up 0.09% to 2,465.07. Australia S&P/ASX 200 is down 0.22% to, 7,033.20.

European shares end the worst quarter in a year with minor gains.

The DAX futures contract in Germany traded 0.16 lower, CAC 40 futures in France down 0.25% to 7,117.19, and the UK 100 futures contract in the U.K. down 0.37% to 7,579.65.

US futures dip after US inflation data, ending weak third quarter.

On the final day of a challenging third quarter for equities, investors rebalanced their portfolios and considered the implications of a U.S. inflation report for the Federal Reserve’s interest rate policy, which contributed to the S&P 500’s lower closing price on Friday.

Indexes: Dow down 0.47%, S&P 500- down 0.27%, Nasdaq up 0.14%.

Corporate News:

Walt Disney Co (DIS) is up 1.15% at 81.05, Walmart Inc. (WMT) is down 1.61% at 159.93, and Amazon.com, Inc. (AMZN) is up at 0.90% at 127.12. JPMorgan Chase & Co (JPM) is down 1.74% at 145.02, and Morgan Stanley (MS) is down 0.63% at 81.67.

Key Economic Events & Data Release Today:

(JPY) Tankan Large Manufacturers Index (Q3) Actual 9, Forecast 6, Previous 5 at 05:20.

(EUR) Spanish Manufacturing PMI (Sep) Actual 47, Forecast 46.5, Previous 46.5 at 12:45.

(GBP) Manufacturing PMI (Sep) Forecast 44.2, Previous 43.0 at 14:00.

(USD) ISM Manufacturing PMI (Sep) Forecast 47.7, Previous 47.6 at 19:30.

(USD) Fed Chair Powell Speaks at 20:30.