. Daily Index Analysis - Asia slips, Europe soars. DOW bullish, FTSE 100 positive.

Daily Index Analysis – Asia slips, Europe soars. DOW bullish, FTSE 100 positive.

Daily Index Analysis – Asia slips, Europe soars. DOW bullish, FTSE 100 positive.

02 Jan 2024

Introduction:

In the indices market, Asian markets mostly slide on the first trading day of 2024, with notable movements in Shanghai, Singapore, Hong Kong, Japan, South Korea, and Australia. Meanwhile, European markets surged to a two-year high, while US stock futures displayed minimal activity after a strong 2023.

Market In Focus for today – DOW JONES

Stock futures showed no significant movement in overnight trading on Tuesday as the market prepared to commence the new year. Futures on the Dow Jones Industrial Average indicated a modest increase of only 23 points.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37999.82 | Positive Crossover | Bullish
  • MA 20: 37880.82 | Positive Crossover | Bullish
  • MA 50: 37387.1 | Positive Crossover | Bullish

Simple:

  • MA 5: 37995.4 | Positive Crossover | Bullish
  • MA 20: 37880.8| Positive Crossover | Bullish
  • MA 50: 3787.12 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.01| Buy Zone| Bullish

Stochastic Oscillator: 16.11|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 38110.50 | R2: 38975.64
  • S1: 37077.92| S2: 35961.61

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 37050.01 | Take Profit: 38110.50| Stop Loss: 36408.13.

FTSE 100:

The FTSE 100 in the UK initiated the new year positively, supported by strength in energy shares on Tuesday. Investors are anticipating the release of economic data this week and evaluating its potential influence on the Bank of England’s interest rate path.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7735.92 | Positive Crossover | Bullish
  • MA 20: 7624.03 | Positive Crossover | Bullish
  • MA 50: 7500.60 | Positive Crossover | Bullish

Simple:

  • MA 5: 7740.58 | Positive Crossover | Bullish
  • MA 20: 7624.08| Positive Crossover | Bullish
  • MA 50: 7500.62| Positive Crossover | Bullish

RSI (Relative Strength Index): 69.04| Buy Zone| Bullish

Stochastic Oscillator: 92.77|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7759.1 | R2: 7933.9
  • S1: 7627.0| S2: 7441.5

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7801.9 | Take Profit: 7933.9| Stop Loss: 7723.4.

Elsewhere in the Indices Market:

The Asian markets mostly slip on the first day of the trading day of 2024.

The Shanghai composite is down at 0.43%. Overall, the Singapore MSCI down 0.60% to 285.57. Over in Hong Kong, the Hang Seng Index down 1.52% to 16,788.55. In Japan, the Nikkei 225 down 0.22% to 33,464.17, while the Topix index was up 0.19% to 2,366.39. South Korea’s Kospi up 0.55% to 2,669.81. Australia S&P/ASX 200 up 0.49% to, 7,627.80.

On the initial trading day of the new year, European markets surged, propelling the regional benchmark to its highest level in almost two years.

The DAX futures contract in Germany traded 0.68 higher, CAC 40 futures in France up 0.23% to 7,560.71, and the UK 100 futures contract in the U.K. down 0.04% to 7,730.49.

US Stock futures show minimal movement as the market begins the new year’s trading following a robust performance in 2023.

In overnight trading on Tuesday, stock futures remained unchanged, setting the stage for the commencement of the new year after an unexpectedly strong 2023, marked by a 24% rally in the S&P 500.

Indexes: Dow up 0.05%, S&P 500- down 0.24%, Nasdaq down 0.45%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.74% at 486.88, Tesla, Inc. (TSLA) down 1.86% at 248.48, and Apple Inc. (AAPL) down 0.54% at 192.53. Goldman Sachs Group Inc (GS) is down 0.17% at 385.77, and Morgan Stanley (MS) is down 0.42% at 0.42.

Key Economic Events & Data Release Today:

(CNY) Caixin Manufacturing PMI (Dec) Actual 50.8, Forecast 50.4, Previous 50.7 at 07:15.

(EUR) German Manufacturing PMI (Dec) Forecast 43.1, Previous 42.6 at 15:30.

(GBP) Manufacturing PMI (Dec) Forecast 46.4, Previous 47.2 at 15:00.

(USD) Manufacturing PMI (Dec) Forecast 48.2, Previous 49.4 at 20:15.