. Daily Index Analysis - Earnings turmoil rattles global markets, FTSE soars.

Daily Index Analysis – Earnings turmoil rattles global markets, FTSE soars.

Daily Index Analysis – Earnings turmoil rattles global markets, FTSE soars.

25 Apr 2024

Introduction:

Amidst varied performances in global indices, Asian shares mostly declined on Thursday, with investors bracing for a wave of earnings reports worldwide. While the Shanghai composite edged up by 0.27%, Japan’s Nikkei 225 plunged by 2.16%. In Europe, stocks saw a modest downturn, while U.S. futures stumbled, influenced by Meta Platforms’ lacklustre results, as investors awaited key economic data impacting Federal Reserve policy decisions.

Market In Focus for today – Dow Jones

The Dow Jones decline as Boeing tested fresh lows.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38527.70 | Negative Crossover | Bearish
  • MA 20: 38460.23 | Positive Crossover | Bullish
  • MA 50: 38634.00 | Negative Crossover | Bearish

Simple:

  • MA 5: 38579.79 | Negative Crossover | Bearish
  • MA 20: 38318.02| Positive Crossover | Bullish
  • MA 50: 38596.46 | Negative Crossover | Bearish

RSI (Relative Strength Index): 49.85| Buy Zone| Bullish

Stochastic Oscillator: 69.43| Buying Zone | Negative

Resistance And Support Levels:

  • R1: 38870.98 | R2: 39749.87
  • S1: 38098.16| S2: 37279.88

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: Stop Sell: 38401.22 | Take Profit: 37673.86| Stop Loss: 38916.44.

S&P 500:

The S&P 500 closed around 5070 following an unsuccessful effort to surpass the 5100 mark.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5076.33 | Positive Crossover | Bearish
  • MA 20: 5082.17 | Positive Crossover | Bullish
  • MA 50: 5129.05 | Negative Crossover | Bearish

Simple:

  • MA 5: 5076.08 | Negative Crossover | Bearish
  • MA 20: 5060.02| Positive Crossover | Bullish
  • MA 50: 5149.07 | Negative Crossover | Bearish

RSI (Relative Strength Index): 45.62 | Negative Zone| Neutral

Stochastic Oscillator: 67.82| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 5150.58 | R2: 5280.03
  • S1: 5052.30| S2: 4956.41

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Sell Limit : 5113.00 | Take Profit: 4996.52| Stop Loss: 5192.11.

FTSE 100:

On Thursday, the UK FTSE 100 stock index reached an all-time high, driven by miner Anglo American receiving a buyout proposal from BHP Group. Additionally, investors welcomed positive earnings reports from various blue-chip companies.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8055.66 | Positive Crossover | Bullish
  • MA 20: 8016.05 | Positive Crossover | Bullish
  • MA 50: 7963.14 | Positive Crossover | Bullish

Simple:

  • MA 5: 8076.93 | Positive Crossover | Bullish
  • MA 20: 7982.04| Positive Crossover | Bullish
  • MA 50: 7960.84 | Positive Crossover | Bullish

RSI (Relative Strength Index): 62.85| Buy Zone| Bullish

Stochastic Oscillator: 71.29| Positive Zone | Negative

Resistance And Support Levels:

  • R1: 8134.1 | R2: 8226.7
  • S1: 7955.8| S2: 7812.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 8019.9 | Take Profit: 8133.8| Stop Loss: 7943.1.

DAX 40:

The DAX’s immediate trajectory will be influenced by commentary from the European Central Bank (ECB), corporate earnings releases, US GDP figures, and the US Personal Income and Outlays Report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18064.68 | Negative Crossover | Bearish
  • MA 20: 18025.98 | Positive Crossover | Bullish
  • MA 50: 18048.77 | Negative Crossover | Bearish

Simple:

  • MA 5: 18092.88 | Negative Crossover | Bearish
  • MA 20: 17949.87 | Positive Crossover | Bullish
  • MA 50: 18084.02 | Negative Crossover | Bearish

RSI (Relative Strength Index): 50.76| Buy Zone| Bullish

Stochastic Oscillator: 64.83| Bullish Zone | Negative

Resistance And Support Levels:

  • R1: 18298.1 | R2: 18639.3
  • S1: 17964.9 | S2: 17479.1

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Stop Sell: 17918.9 | Take Profit: 17554.9 | Stop Loss: 18222.2.

Elsewhere in the Indices Market:

On Thursday, most Asian shares saw a decline, with investors anticipating a deluge of global earnings reports.

The Shanghai composite is up at 0.27%. Overall, the Singapore MSCI up 0.16% to 304.35. Over in Hong Kong, the Hang Seng Index up 0.48% to 17,284.54. In Japan, the Nikkei 225 down 2.16% to 37,628.48, while the Topix index was down 1.74% to 2663.53. South Korea’s Kospi down 1.76% to 2,628.62. Australia S&P/ASX 200 down 0.065% to, 7,683.00.

European stocks saw a slight decline on Thursday as traders assessed the mixed earnings results from blue-chip companies.

The DAX futures contract in Germany traded 0.72 lower, CAC 40 futures in France down 0.96% to 8,014.08 and the UK 100 futures contract in the U.K. up 0.63% to 8,091.27.

Futures stumble as Meta Platforms’ performance puts pressure on mega-cap stocks.

On Thursday, U.S. stock index futures dipped as most Megacap growth stocks faced declines following disappointing quarterly results from Meta Platforms. Investors awaited further economic data throughout the week, which could impact the Federal Reserve’s monetary policy.

Indexes: Dow down 0.58%, S&P 500- down 0.71%, Nasdaq down 1.07%.

Corporate News:

Netflix, Inc. (NFLX) down 3.92% at 555.12, Tesla, Inc (TSLA) up 12.06% at 162.13, Apple Inc. (AAPL) up 1.27% at 169.02. Goldman Sachs Group Inc (GS) down 0.23% at 423.04, Morgan Stanley (MS) up 0.096% at 93.85.

Key Economic Events & Data Release Today:

(USD) Initial Jobless Claims Forecast 214K, Previous 212K at 18:00.

(USD) GDP (QoQ) (Q1) Forecast 2.5%, Previous 3.4% at 18:00.

(USD) Pending Home Sales (MoM) (Mar) Forecast 0.3%, Previous 1.6% at 19:30.