. Daily Index Analysis - Asia falters, Europe rebounds, Dow bears, S&P holds, FTSE, DAX shift.

Daily Index Analysis – Asia falters, Europe rebounds, Dow bears, S&P holds, FTSE, DAX shift.

Daily Index Analysis – Asia falters, Europe rebounds, Dow bears, S&P holds, FTSE, DAX shift.

18 Jan 2024

Introduction:

Global markets witness mixed performance as Asian indices struggle with fading rate-cut hopes. In Asia, the Shanghai composite drops, while Hong Kong’s Hang Seng rises. European stocks rebound as interest rate expectations shift positively. Conversely, Wall Street faces losses driven by December’s robust U.S. retail sales data, tempering early Federal Reserve rate-cut anticipations.

Market In Focus for today – DOW JONES

The Dow concludes Wednesday with losses, marking its third consecutive negative session, as bond yields experience an increase.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37463.01 | Negative Crossover | Bearish
  • MA 20: 37694.84 | Negative Crossover | Bearish
  • MA 50: 37781.81 | Negative Crossover | Bearish

Simple:

  • MA 5: 37430.07 | Positive Crossover | Bullish
  • MA 20: 37694.22| Negative Crossover | Bearish
  • MA 50: 37781.34 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.31| Sell Zone| Bearish

Stochastic Oscillator: 27.45|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 37571.74 | R2: 38075.74
  • S1: 37102.50| S2: 36615.88

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Limit Sell: 37554.36 | Take Profit: 37050.36| Stop Loss: 37901.95.

S&P 500:

On Wednesday, U.S. stocks faced downward pressure, driven by elevated yields. The S&P 500 (.SPX) reached its lowest point in more than a week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4781.13 | Positive Crossover | Bullish
  • MA 20: 4800.34 | Negative Crossover | Bearish
  • MA 50: 4790.05 | Negative Crossover | Bearish

Simple:

  • MA 5: 4775.92 | Positive Crossover | Bullish
  • MA 20: 4800.88| Negative Crossover | Bearish
  • MA 50: 4790.06| Negative Crossover | Bearish

RSI (Relative Strength Index): 50.19| Bullish Zone| Positive

Stochastic Oscillator: 20.39|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 4796.16 | R2: 4842.42
  • S1: 4754.85| S2: 4701.98

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4779.63 | Take Profit: 4837.47| Stop Loss: 4741.63.

FTSE 100:

The FTSE 100 Index is experiencing a notable decline after slipping below the 50-day moving average at 7553.64.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7480.98 | Positive Crossover | Bullish
  • MA 20: 7590.36 | Negative Crossover | Bearish
  • MA 50: 7668.09 | Negative Crossover | Bearish

Simple:

  • MA 5: 7465.04 | Positive Crossover | Bullish
  • MA 20: 7590.33| Negative Crossover | Bearish
  • MA 50: 7668.08| Negative Crossover | Bearish

RSI (Relative Strength Index): 32.36| Selling Zone| Sell

Stochastic Oscillator: 17.85|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 7508.4 | R2: 7602.9
  • S1: 7438.1| S2: 7361.7

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Limit Sell: 7518.5 | Take Profit: 7438.1| Stop Loss: 7580.8.

DAX 40:

European stocks witnessed an early Thursday ascent, rebounding as traders tempered their expectations for major central banks to initiate interest rate cuts in the near term.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16599.44 | Positive Crossover | Bullish
  • MA 20: 16724.25 | Negative Crossover | Bearish
  • MA 50: 16786.28 | Negative Crossover | Bearish

Simple:

  • MA 5: 16560.08 | Positive Crossover | Bullish
  • MA 20: 16724.04| Negative Crossover | Bearish
  • MA 50: 16786.07| Negative Crossover | Bearish

RSI (Relative Strength Index): 47.55| Positive Zone| Bullish

Stochastic Oscillator: 33.07|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 16692.4 | R2: 16989.4
  • S1: 16491.5| S2: 16177.1

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion:  Limit Buy: 16640.0 | Take Profit: 16963.2| Stop Loss: 16456.6.

Elsewhere in the Indices Market:

Asian markets show a mixed performance following a decline on Wall Street, as hopes for a rate cut diminish.

The Shanghai composite is down at 2.09%. Overall, the Singapore MSCI is down 0.11% to 273.77. Over in Hong Kong, the Hang Seng Index up 0.75% to 15,391.79. In Japan, the Nikkei 225 was down 0.03% to 35,466.17, while the Topix index was down 0.17% to 2,492.09. South Korea’s Kospi up 0.17% to 2,440.04. Australia S&P/ASX 200 is down 0.63% to, 7,346.50.

European stocks regain ground as expectations for interest rates undergo a shift.

The DAX futures contract in Germany traded 0.60 higher, CAC 40 futures in France up 0.79% to 7,376.22 and the UK 100 futures contract in the U.K. up 0.17% to 7,458.66.

Wall Street concludes with losses as the latest US retail sales data reduces expectations for a rate cut.

Wednesday saw Wall Street stocks closing in the red, with optimistic U.S. retail sales figures for December dampening expectations of an early initiation of the Federal Reserve’s rate-cut strategy, potentially delaying it beyond March.

Indexes: Dow down 0.25%, S&P 500- down 0.56%, Nasdaq down 0.59%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.19% at 480.33, Tesla, Inc. (TSLA) is down 1.98% at 215.55, and Apple Inc. (AAPL) is down 0.52% at 182.68. Goldman Sachs Group Inc (GS) is down 0.86% at 377.18, and Morgan Stanley (MS) is down 1.181% at 84.41.

Key Economic Events & Data Release Today:

(AUD) Employment Change (Dec) Forecast 17.6K, Previous 61.5K at 06:00.

(JPY) Industrial Production (MoM) (Nov) Forecast –0.9%, Previous 1.3% at 10:00.

(ECB) ECB Publishes Account of Monetary Policy Meeting at 18:00.

(USD) Building Permits (Dec) Forecast 1.426M, Previous 1.560M at 19:00.

(USD) Initial Jobless Claims Forecast 270K, Previous 202K at 19:00.

(EUR) ECB President Lagarde Speaks at 20:45.