. Daily Index Analysis - Dow steady, S&P breaks, FTSE rises.

Daily Index Analysis – Dow steady, S&P breaks, FTSE rises.

Daily Index Analysis – Dow steady, S&P breaks, FTSE rises.

05 Feb 2024

Introduction:

In the Asian indices market, stocks face a general decline, notably in China, despite market support efforts. Meanwhile, European shares edge higher driven by positive earnings. The DAX in Germany, CAC 40 in France, and UK 100 show modest gains. U.S. stock futures remain steady, with minimal changes, ahead of a busy week of corporate earnings, influenced by Federal Reserve Chair Jerome Powell’s cautious remarks on interest rate cuts.

Market In Focus for today – Dow Jones

The Dow Jones futures are steady, Mcdonald’s earnings are ahead.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38654.13 | Positive Crossover | Bullish
  • MA 20: 38475.00 | Positive Crossover | Bullish
  • MA 50: 38113.96 | Positive Crossover | Bullish

Simple:

  • MA 5: 38660.00 | Positive Crossover | Bullish
  • MA 20: 38476.12| Positive Crossover | Bullish
  • MA 50: 38114.05 | Positive Crossover | Bullish

RSI (Relative Strength Index): 61.23| Buy Zone| Bullish

Stochastic Oscillator: 47.66| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 38900.79 | R2: 39472.96
  • S1: 38233.23| S2: 37364.99

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38283.46 | Take Profit: 38900.79| Stop Loss: 37937.15.

S&P 500:

S&P 500 futures declined following the index achieving its seventh record close of the year.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4962.86 | Positive Crossover | Bullish
  • MA 20: 4933.52 | Positive Crossover | Bullish
  • MA 50: 4891.53 | Positive Crossover | Bullish

Simple:

  • MA 5: 4962.84 | Positive Crossover | Bullish
  • MA 20: 4933.50| Positive Crossover | Bullish
  • MA 50: 4881.88| Positive Crossover | Bullish

RSI (Relative Strength Index): 62.54| Bullish Zone| Positive

Stochastic Oscillator: 69.37| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4997.27 | R2: 5081.55
  • S1: 4949.51| S2: 4837.14

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4865.84 | Take Profit: 4980.41| Stop Loss: 4797.81.

FTSE 100:

The FTSE 100 is anticipated to begin the week positively, with a focus on upcoming PMI readings.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7650.78 | Positive Crossover | Bullish
  • MA 20: 7659.09 | Negative Crossover | Bearish
  • MA 50: 7584.49 | Positive Crossover | Bullish

Simple:

  • MA 5: 7653.00 | Positive Crossover | Bullish
  • MA 20: 7659.39| Positive Crossover | Bullish
  • MA 50: 7584.94| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.71| Buying Zone| Buy

Stochastic Oscillator: 7.35| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 7673.3 | R2: 7779.2
  • S1: 7612.3| S2: 7538.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7694.8 | Take Profit: 7779.2| Stop Loss: 7644.6.

DAX 40:

On Monday, European markets experienced a slight upward movement as investors processed the most recent remarks from U.S. Federal Reserve Chairman Jerome Powell.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17017.45 | Positive Crossover | Bullish
  • MA 20: 17026.02 | Positive Crossover | Bullish
  • MA 50: 16866.07 | Positive Crossover | Bullish

Simple:

  • MA 5: 17025.06| Positive Crossover | Bullish
  • MA 20: 17026.03| Positive Crossover | Bullish
  • MA 50: 16866.56| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.86| Positive Zone| Bullish

Stochastic Oscillator: 34.82|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 17191.8 | R2: 17399.8
  • S1: 16919.3| S2: 16711.4

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 16912.02 | Take Profit: 17191.8| Stop Loss: 16747.2.

Elsewhere in the Indices Market:

Asian stocks generally decline, with Chinese shares slipping, despite efforts to support markets.

The Shanghai composite is down at 1.02%. Overall, the Singapore MSCI is down 1.71% to 276.20. Over in Hong Kong, the Hang Seng Index down 0.15% to 15,510.01. In Japan, the Nikkei 225 was up 0.54% to 36,354.16, while the Topix index was up 0.67% to 2556.71. South Korea’s Kospi down 0.92% to 2,615.31. Australia S&P/ASX 200 is down 0.95% to, 7,625.90.

European shares inch higher on earnings boost.

The DAX futures contract in Germany traded 0.14 higher, CAC 40 futures in France up 0.06% to 7,596.99 and the UK 100 futures contract in the U.K. up 0.41% to 7,646.92.

Ahead of a busy week of corporate earnings, U.S. stock futures show minimal changes.

On Monday morning, stock futures experienced a slight decline following U.S. Federal Reserve Chair Jerome Powell’s remarks that dampened investor expectations for imminent interest rate cuts.

Indexes: Dow down 0.19%, S&P 500- down 0.2%, Nasdaq down 0.18%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.51% at 564.64, Tesla, Inc (TSLA) is down 0.50% at 187.91, and Apple Inc. (AAPL) is down 0.54% at 185.85. Goldman Sachs Group Inc (GS) is up 1.04% at 387.86, and Morgan Stanley (MS) is up 0.52% at 87.27.

Key Economic Events & Data Release Today:

(GBP) Composite PMI (Jan) Forecast 53.8, Previous 53.4 at 4:30.

(USD) Service PMI (Jan) Forecast 52.9, Previous 51.4 at 09:45.

(USD) ISM Non-Manufacturing PMI (Jan) Forecast 52.0, Previous 50.6 at 10:00.

(AUD) Retail Sales (MoM) (Dec) Forecast 0.4%, Previous 1.6% at 19:30.

(AUD) RBA Interest Rate Decision (Feb) Forecast 4.35%, Previous 4.35% at 22:30.