. Daily Index Analysis - Asia up, China slows, Europe climbs, US retreats.

Daily Index Analysis – Asia up, China slows, Europe climbs, US retreats.

Daily Index Analysis – Asia up, China slows, Europe climbs, US retreats.

05 Mar 2024

Introduction:

In the global indices landscape, Asian markets show mixed results with China’s factory activity slowing. European stocks rise on global optimism, particularly focused on inflation. Meanwhile, US stocks conclude lower as Wall Street retreats from record highs, accompanied by a slight uptick in Treasury yields. Investor attention remains fixated on Jerome Powell’s imminent testimony and crucial jobs data.

Market In Focus for today – DOW JONES

Dow Jones is cautious as investors closely monitor Federal Reserve policy and upcoming job market data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38997.17 | Negative Crossover | Bearish
  • MA 20: 39023.27 | Negative Crossover | Bearish
  • MA 50: 38849.22 | Positive Crossover | Bullish

Simple:

  • MA 5: 39016.09 | Negative Crossover | Bearish
  • MA 20: 39023.35| Negative Crossover | Bearish
  • MA 50: 38849.21 | Positive Crossover | Bullish

RSI (Relative Strength Index): 49.49| Buy Zone| Buy

Stochastic Oscillator: 15.06| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 39026.79 | R2: 39649.07
  • S1: 38867.36| S2: 38404.50

Overall Sentiment: Positive | Market Direction: Buy

Trade Suggestion: Limit Buy: 38877.64 | Take Profit: 39289.07| Stop Loss: 38651.36.

S&P 500:

The S&P 500 slightly declines as investors await economic data with bated breath.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5120.90 | Negative Crossover | Bearish
  • MA 20: 5104.23 | Positive Crossover | Bullish
  • MA 50: 5059.70 | Positive Crossover | Bullish

Simple:

  • MA 5: 5124.32 | Negative Crossover | Bearish
  • MA 20: 5104.27| Positive Crossover | Bullish
  • MA 50: 5059.71 | Positive Crossover | Bullish

RSI (Relative Strength Index): 59.96| Bullish Zone| Positive

Stochastic Oscillator: 60.58| Negative Zone | Negative

Resistance And Support Levels:

  • R1: 5140.06 | R2: 5216.39
  • S1: 5048.89| S2: 4959.84

Overall Sentiment: Bullish| Market Direction: Buy

Trade Suggestion:  Limit Buy: 5067.97 | Take Profit: 514006| Stop Loss: 5029.81.

FTSE 100:

FTSE 100 approaches nearly three-week lows, pulled down by the weakness in commodity stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7657.29 | Negative Crossover | Bearish
  • MA 20: 7670.94 | Negative Crossover | Bearish
  • MA 50: 7661.37 | Negative Crossover | Bearish

Simple:

  • MA 5: 7665.83 | Negative Crossover | Bearish
  • MA 20: 7670.90| Negative Crossover | Bearish
  • MA 50: 7661.35| Negative Crossover | Bearish

RSI (Relative Strength Index): 44.10| Neutral Zone| Neutral

Stochastic Oscillator: 40.33| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 7704.4 | R2: 7791.8
  • S1: 7604.1| S2: 7500.0

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Limit Sell: 7652.9 | Take Profit: 7567.4| Stop Loss: 7714.6.

EURO STOXX 50:

European markets decline as sentiment faces challenges in anticipation of the upcoming ECB meeting.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4905.17 | Positive Crossover | Bullish
  • MA 20: 4895.55 | Positive Crossover | Bullish
  • MA 50: 4824.16| Positive Crossover | Bullish

Simple:

  • MA 5: 4907.08| Positive Crossover | Bullish
  • MA 20: 4895.06| Positive Crossover | Bullish
  • MA 50: 4824.18| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.18| Buy Zone| Bullish

Stochastic Oscillator: 14.92|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4929 | R2: 5026
  • S1: 4790| S2: 4660

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4806 | Take Profit: 4929| Stop Loss: 4732.

Elsewhere in the Indices Market:

Asian stock markets generally rise, China Factory Activity Slows.

The Shanghai composite is up at 0.28%. Overall, the Singapore MSCI is down 0.56% to 281.18. Over in Hong Kong, the Hang Seng Index is down 2.61% to 16,162.64. In Japan, the Nikkei 225 was down 0.03% to 40,097.63, while the Topix index was up 0.50% to 2719.93. South Korea’s Kospi down 0.93% to 2,649.40. Australia S&P/ASX 200 is down 0.15% to, 7,724.20.

European stocks climb fuelled by global optimism, with a focus on inflation.

The DAX futures contract in Germany traded 0.40 lower, CAC 40 futures in France down 0.38% to 7,926.48, and the UK 100 futures contract in the U.K. down 0.55% to 7,598.61%.

US stocks end lower ahead of Jerome Powell and upcoming jobs data.

Monday saw Wall Street stocks retreat from record highs, closing lower, while U.S. Treasury yields inched up. Investors awaited pivotal jobs data and Federal Reserve Chair Jerome Powell’s upcoming congressional testimony later in the week.

Indexes: Dow down 0.39%, S&P 500- down 0.16%, Nasdaq up 0.15%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.57% at 615.83, Tesla, Inc. (TSLA) is down 7.16% at 188.14, and Apple Inc. (AAPL) is down 2.54% at 175.10. Goldman Sachs Group Inc (GS) is up 1.07% at 392.25, and Morgan Stanley (MS) is up 4.12% at 90.04.

Key Economic Events & Data Release Today:

(JPY) Tokyo Core CPI (YoY) (Feb) Forecast 2.5%, Previous 1.6% at 05:00.

(GBP) Service PMI (Feb) Forecast 54.3, Previous 54.3 at 15:00.

(GBP) Composite PMI (Feb) Forecast 53.3, Previous 52.9 at 15:00.

(USD) Service PMI (Feb) Forecast 51.3, Previous 52.5 at 20:15.

(USD) ISM Non-Manufacturing PMI (Feb) Forecast 53.0, Previous 53.4 at 20:30.