. Daily Index Analysis - Equity Markets Slide Ahead Of Fed Meeting

Daily Index Analysis – Equity Markets Slide Ahead Of Fed Meeting

Daily Index Analysis – Equity Markets Slide Ahead Of Fed Meeting

01 May 2024

Equity Markets Slide Ahead of Fed Meeting

Introduction:

Amid anticipation of the upcoming US Fed meeting, Asian equities experience a slide. The Shanghai composite dips by 0.26%, while the Singapore MSCI drops 1.70%. European markets also record losses as attention is drawn to developments in the Middle East. Meanwhile, Wall Street faces a decline, with investors weighing strong wage data alongside the impending Fed meeting’s impact on interest rates.

Market In Focus for today – Dow Jones

The Dow plunges by 570 points, marking its worst month since September 2022, fuelled by increasing bond yields.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38235.14 | Negative Crossover | Bearish
  • MA 20: 38320.26 | Negative Crossover | Bearish
  • MA 50: 38501.78 | Negative Crossover | Bearish

Simple:

  • MA 5: 38318.02 | Negative Crossover | Bearish
  • MA 20: 38426.15| Negative Crossover | Bearish
  • MA 50: 38381.32 | Negative Crossover | Bearish

RSI (Relative Strength Index): 34.88| Sell Zone| Bearish


Stochastic Oscillator: 3.52| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 38264.16 | R2: 38931.39
  • S1: 37470.70| S2: 36695.28


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Sell Limit: 38107.35 | Take Profit: 37451.92| Stop Loss: 38561.11.

S&P 500:

S&P 500 futures declined on Wednesday as investors anticipated the Federal Reserve’s rate policy announcement.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5093.31 | Negative Crossover | Bearish
  • MA 20: 5099.16 | Negative Crossover | Bearish
  • MA 50: 5121.62 | Negative Crossover | Bearish

Simple:

  • MA 5: 5112.84 | Negative Crossover | Bearish
  • MA 20: 5105.52| Negative Crossover | Bearish
  • MA 50: 5113.45 | Negative Crossover | Bearish

RSI (Relative Strength Index): 39.26 | Negative Zone| Bearish


Stochastic Oscillator: 3.91| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5085.85 | R2: 5196.82
  • S1: 4958.23| S2: 4833.38


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5074.75 | Take Profit: 4961.00| Stop Loss: 5171.86.

FTSE 100:

London’s FTSE 100 index relinquished its earlier advances and remained unchanged on Wednesday, as most European markets observed the May Day/Labor Day public holiday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8156.14 | Positive Crossover | Bullish
  • MA 20: 8120.14 | Positive Crossover | Bullish
  • MA 50: 8039.47 | Positive Crossover | Bullish

Simple:

  • MA 5: 8169.32 | Positive Crossover | Bullish
  • MA 20: 8129.33| Positive Crossover | Bullish
  • MA 50: 8015.71 | Positive Crossover | Bullish

RSI (Relative Strength Index): 59.49| Buy Zone| Bullish


Stochastic Oscillator: 24.06| Negative Zone | Negative

Resistance And Support Levels:

  • R1: 8223.5 | R2: 8349.0
  • S1: 8066.7| S2: 7897.3


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8082.4 | Take Profit: 8223.5| Stop Loss: 8000.8.


Elsewhere in the Indices Market:


Asian equities slide as attention shifts towards the upcoming US Fed meeting.

The Shanghai composite is down at 0.26%. Overall, the Singapore MSCI down 1.70% to 297.95. Over in Hong Kong, the Hang Seng Index up 0.09% to 17,763.03. In Japan, the Nikkei 225 down 0.34% to 38,274.05, while the Topix index was down 0.50% to 2729.40. South Korea’s Kospi up 0.17% to 2,692.06. Australia S&P/ASX 200 down 1.23% to, 7,569.90.

European markets concluded previous session with losses as investors monitored events unfolding in the Middle East.

The DAX futures contract in Germany traded 1.03 lower, CAC 40 futures in France down 0.99% to 7,984.93 and the UK 100 futures contract in the U.K. up 0.21% to 8,161.59.

Wall Street decline as markets weigh strong wage data, Fed meeting.

On Tuesday, U.S. stocks closed lower as investors assessed economic indicators reflecting increasing labor expenses and declining consumer sentiment, coinciding with a pivotal Federal Reserve policy meeting to determine interest rate direction.

Indexes: Dow down 1.47%, S&P 500-down 1.56%, Nasdaq down 2.00%.


Corporate News:

Netflix, Inc. (NFLX) down 1.58% at 550.64, Tesla, Inc (TSLA) down 5.55% at 183.28, Apple Inc. (AAPL) down 1.38% at 170.33. Goldman Sachs Group Inc (GS) down 0.95% at 426.71, Morgan Stanley (MS) down 1.38% at 90.84.



Key Economic Events & Data Release Today:

(NZD) Employment Change (QoQ) (Q1) Forecast 0.3%, Previous 0.4% at 04:14.

(NZD) RBNZ Gov Orr Speaks at 04:30.

(GBP) Manufacturing PMI (Apr) Forecast 48.7%, Previous 50.3% at 14:00.

(USD) ADP Nonfarm Employment Change (Apr) Forecast 179K, Previous 184K at 17:45.

(USD) ISM Manufacturing PMI (Apr) Forecast 50.0, Previous 50.3 at 19:30.

(USD) JoLTs Job Openings (Mar) Forecast 8.680M, Previous 8.756M at 19:30.

(USD) FOMC Statement at 23:30.