. Daily Index Analysis - Global Markets Grapple with Rate Cut Concerns Amid Economic Data

Daily Index Analysis – Global Markets Grapple with Rate Cut Concerns Amid Economic Data

Daily Index Analysis – Global Markets Grapple with Rate Cut Concerns Amid Economic Data

24 May 2024


Introduction:

Global markets faced a downturn today, with Asian stocks slipping on delayed U.S. Fed rate cut expectations. In Europe, indices are poised for weekly losses amidst resurfacing rate concerns. Meanwhile, Wall Street experienced a significant tumble as worries over prolonged monetary policy tightening overshadowed earlier enthusiasm for AI-driven stocks, notably Nvidia’s quarterly performance.

Market In Focus for today – Nasdaq 100

Nasdaq 100 hanging around  an important resistance area.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18780.26 | Negative Crossover | Bearish
  • MA 20: 18715.51 | Positive Crossover | Bullish
  • MA 50: 18483.43 | Positive Crossover | Bullish

Simple:

  • MA 5: 18805.87 | Negative Crossover | Bearish
  • MA 20: 18736.97| Positive Crossover | Bullish
  • MA 50: 18452.39 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.73| Bullish Zone| Positive


Stochastic Oscillator: 6.81| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 18808.23 | R2: 19027.57
  • S1: 18532.03| S2: 18255.82


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 18564.52 | Take Profit: 19003.20| Stop Loss: 18304.56.

S&P 500:

The S&P 500 edged down as increasing Treasury yields, indicating persistent inflation, overshadowed hopes for rate cuts, despite a surge led by Nvidia in tech shares.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5320.36 | Negative Crossover | Bearish
  • MA 20: 5317.32 | Negative Crossover | Bearish
  • MA 50: 5275.13 | Positive Crossover | Bullish

Simple:

  • MA 5: 5328.39 | Negative Crossover | Bearish
  • MA 20: 5328.14| Negative Crossover | Bearish
  • MA 50: 5273.59 | Positive Crossover | Bullish

RSI (Relative Strength Index): 46.83| Neutral Zone| Neutral


Stochastic Oscillator: 8.81 | Selling Zone | Negative

Resistance And Support Levels:

  • R1: 5370.20 | R2: 5420.73
  • S1: 5299.16| S2: 5212.12


Overall Sentiment: Neutral | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5226.50 | Take Profit: 5348.20| Stop Loss: 5160.14.

FTSE 100:

The FTSE 100 tumbles as worries about slowing economic growth grip the market.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8345.10 | Negative Crossover | Bearish
  • MA 20: 8369.37 | Negative Crossover | Bearish
  • MA 50: 8330.44 | Negative Crossover | Bearish

Simple:

  • MA 5: 8358.69 | Negative Crossover | Bearish
  • MA 20: 8391.07| Negative Crossover | Bearish
  • MA 50: 8359.68 | Negative Crossover | Bearish

RSI (Relative Strength Index): 39.15| Selling Zone| Bearish


Stochastic Oscillator: 8.13| Selling Zone | Neutral

Resistance And Support Levels:

  • R1: 8474.7 | R2: 8550.00
  • S1: 8225.5| S2: 8053.6


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 8370.6 | Take Profit: 8206.4| Stop Loss: 8485.2.

Euro Stoxx 50:

European stocks fell on Friday, set for a weekly loss, as expectations of central bank rate cuts faded due to lingering inflation in the US and a strengthening Eurozone economy.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5027.71 | Negative Crossover | Bearish
  • MA 20: 5039.14 | Negative Crossover | Bearish
  • MA 50: 5035.83 | Negative Crossover | Bearish

Simple:

  • MA 5: 5029.05 | Negative Crossover | Bearish
  • MA 20: 5045.65| Positive Crossover | Bearish
  • MA 50: 5035.00 | Positive Crossover | Bearish

RSI (Relative Strength Index): 42.25| Neutral Zone| Neutral


Stochastic Oscillator: 14.78| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 5093 | R2: 5141
  • S1: 4991| S2: 4906


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5055 | Take Profit: 4968| Stop Loss: 5114.


Elsewhere in the Indices Market:


Asian stocks decline as US Fed’s rate cuts seen delayed.

The Shanghai composite is down at 0.88%. Overall, the Singapore MSCI down 0.57% to 309.88. Over in Hong Kong, the Hang Seng Index down 1.38% to 18,608.94. In Japan, the Nikkei 225 down 1.17% to 38,646.11, while the Topix index was down 0.44% to 2742.54. South Korea’s Kospi down 1.26% to 2,687.60. Australia S&P/ASX 200 down 1.08% to, 7,727.60.

European stocks headed for a weekly decline as rate concerns resurface.

The DAX futures contract in Germany traded 0.37 higher, CAC 40 futures in France down 0.20% to 8,086.08 and the UK 100 futures contract in the U.K. down 0.35% to 8,309.77.

Wall Street tumbles as rate jitters dampen AI enthusiasm.

U.S. stocks closed significantly lower on Thursday as the initial excitement surrounding Nvidia’s quarterly results waned, while strong economic data heightened worries about prolonged tightening of monetary policy.

Indexes: Dow up 0.1%, S&P 500- down 0.74%, Nasdaq down 0.39%.


Corporate News:

Netflix, Inc. (NFLX) down 0.75% at 635.67, Tesla, Inc (TSLA) down 3.54% at 173.11, Apple Inc. (AAPL) down 2.11% at 186.88. Goldman Sachs Group Inc (GS) down 0.91% at 458.15, Morgan Stanley (MS) down 1.81% at 98.92.



Key Economic Events & Data Release Today:

(GBP) Retail Sales (MoM) (Apr) Forecast –0.5%, Previous –0.2% at 02:00.

(EUR) German GDP (QoQ) (Q1) Forecast 0.2%, Previous –0.3% at 02:00.

(CAD) Manufacturing Sales (MoM) Previous –2.1% at 08:30.

(USD) Durable Goods Orders (MoM) (Apr) Forecast –0.9%, Previous 2.6% at 08:30.

(CAD) Core Retail Sales (MoM) (Mar) Forecast –0.1%, Previous –0.1% at 08:30.