. Daily Index Analysis - Asian Shares Tumble, Wall Street Reflects Changes

Daily Index Analysis – Asian Shares Tumble, Wall Street Reflects Changes

Daily Index Analysis – Asian Shares Tumble, Wall Street Reflects Changes

17 Jan 2024

Introduction:

In the global indices market, Asian shares decline following Wall Street’s overnight downturn. Major indices like the Shanghai Composite, Hang Seng, and Nikkei 225 are in the red. European equities also suffer from uncertainties over rate cuts and weak Chinese economic data. Wall Street experiences losses as the dollar strengthens, reflecting a shift in interest rate expectations.

Market In Focus for today – Nasdaq 100

Despite a recovery last week, the upward momentum has paused. However, the index remains close to achieving new record highs.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16901.01 | Negative Crossover | Bearish
  • MA 20: 16908.41 | Negative Crossover | Bearish
  • MA 50: 16846.12 | Positive Crossover | Bullish

Simple:

  • MA 5: 16898.07 | Negative Crossover | Bearish
  • MA 20: 16908.22| Negative Crossover | Bearish
  • MA 50: 16846.04 | Positive Crossover | Bullish

RSI (Relative Strength Index): 49.33| Buying Zone| Bullish

Stochastic Oscillator: 18.1|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 17153.52 | R2: 17487.23
  • S1: 16830.24| S2: 16319.52


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Stop Sell: 16746.81 | Take Profit: 16319.25| Stop Loss: 17059.67.

S&P 500:

Tuesday witnessed a decline in U.S. stocks, influenced by mixed earnings from Morgan Stanley and Goldman Sachs, exerting pressure on the banking sector. Additionally, sell-offs in Boeing and Apple hurt the S&P 500.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4788.07 | Negative Crossover | Bearish
  • MA 20: 4801.98 | Negative Crossover | Bearish
  • MA 50: 4793.05 | Negative Crossover | Bearish

Simple:

  • MA 5: 4789.57 | Negative Crossover | Bearish
  • MA 20: 4801.88| Negative Crossover | Bearish
  • MA 50: 4793.06| Negative Crossover | Bearish

RSI (Relative Strength Index): 41.75| Neutral Zone| Neutral


Stochastic Oscillator: 3.4|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4841.25 | R2: 4900.00
  • S1: 4768.90| S2: 4647.75


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Stop Sell : 4734.20 | Take Profit: 4647.45| Stop Loss: 4801.11.

EURO STOXX 50:

On Wednesday, European stock markets experienced a significant decline due to heightened uncertainty surrounding the possibility of early interest rate cuts, coupled with disappointing economic growth data from China.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4443.68 | Negative Crossover | Bearish
  • MA 20: 4482.95 | Negative Crossover | Bearish
  • MA 50: 4509.14 | Negative Crossover | Bearish

Simple:

  • MA 5: 4444.04 | Negative Crossover | Bearish
  • MA 20: 4483.42| Negative Crossover | Bearish
  • MA 50: 4509.96| Negative Crossover | Bearish

RSI (Relative Strength Index): 33.11| Selling Zone| Sell


Stochastic Oscillator: 3.03|Sell Zone | Sell

Resistance And Support Levels:

  • R1: 4469 | R2: 4535
  • S1: 4408| S2: 4325


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Limit Sell : 4434 | Take Profit: 4351| Stop Loss: 4482.

DAX 40:

DAX Index Futures show a decline as China’s GDP figures set the tone.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16608.06 | Negative Crossover | Bearish
  • MA 20: 16762.25 | Negative Crossover | Bearish
  • MA 50: 16804.28 | Negative Crossover | Bearish

Simple:

  • MA 5: 16606.06 | Negative Crossover | Bearish
  • MA 20: 16762.01| Negative Crossover | Bearish
  • MA 50: 16804.03| Negative Crossover | Bearish

RSI (Relative Strength Index): 33.09| Negative Zone| Neutral


Stochastic Oscillator: 0.97|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 16648.7 | R2: 16963.2
  • S1: 16491.5| S2: 16115.9


Overall Sentiment: Bearish | Market Direction: Buy


Trade Suggestion:  Stop Sell : 16578.9 | Take Profit: 16238.2| Stop Loss: 16788.5.

Elsewhere in the Indices Market:

Asian shares were trading mostly lower on Wednesday following an overnight downturn in Wall Street.

The Shanghai composite is down at 2.09%. Overall, the Singapore MSCI down 1.62% to 274.10. Over in Hong Kong, the Hang Seng Index down 3.71% to 15,276.90. In Japan, the Nikkei 225 down 0.40% to 35,477.75, while the Topix index was down 0.30% to 2,496.38. South Korea’s Kospi down 2.47% to 2,525.05. Australia S&P/ASX 200 down 0.29% to, 7,393.10.

European equities decline due to uncertainty over rate cuts and weak economic growth figures from China.

The DAX futures contract in Germany traded 1.08 lower, CAC 40 futures in France down 1.23% to 7,307.32 and the UK 100 futures contract in the U.K. down 1.55% to 7,441.08.

Wall Street concludes with losses as the dollar and US yields increase, reflecting a changing perspective on interest rates.

On Tuesday, U.S. stocks pulled back as the dollar strengthened, prompted by cautions that market expectations regarding the timing and scale of central bank policy cuts may have been overly optimistic.

Indexes: Dow down 0.62%, S&P 500- down 0.37%, Nasdaq down 0.19%.

Corporate News:

Netflix, Inc. (NFLX) down 2.22% at 481.24, Tesla, Inc (TSLA) up 0.47% at 219.91, Apple Inc. (AAPL) up 1.23% at 183.63. Goldman Sachs Group Inc (GS) up 0.71% at 380.45, Morgan Stanley (MS) down 4.16% at 85.97.

Key Economic Events & Data Release Today:

(CNY) Industrial Production (YoY) (Dec) Actual 6.8%, Forecast 6.6%, Previous 6.6% at 07:30.

(CNY) GDP (YoY) (Q4) Actual 5.2%, Forecast 5.3%, Previous 4.9% at 07:30.

(GBP) CPI (YoY) (Dec) Actual 4.0%, Forecast –3.8%, Previous 3.9% at 12:30.

(EUR) Core CPI (YoY) (Dec) Forecast 2.9%, Previous 2.4% at 15:30.

(USD) Retail Sales (MoM) (Dec) Forecast 0.4%, Previous 0.3% at 19:00.

(USD) Core Retail Sales (MoM) (Dec) Forecast 0.2%, Previous 0.2% at 19:00.

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