. Daily Index Analysis - FTSE 100: Cautious Mood Deepens as European Stocks Slide

Daily Index Analysis – FTSE 100: Cautious Mood Deepens as European Stocks Slide

Daily Index Analysis – FTSE 100: Cautious Mood Deepens as European Stocks Slide

20 Oct 2023

Introduction:

In the world of global indices, Asian stocks are in decline as tensions in the Middle East take centre stage, while oil prices are advancing. The European market is also bracing for a sharp weekly loss, driven by concerns over geopolitical issues and interest rate uncertainties. On Wall Street, a decline was witnessed as Treasury yields surged during Federal Reserve Chair Jerome Powell’s remarks, sparking discussions about the duration of higher interest rates. Tesla shares notably felt the impact.

Market In Focus for today – FTSE 100

On Thursday, European stock markets faced a decline due to a series of disappointing corporate earnings reports, which included negative results from major food conglomerate Nestle. These results exacerbated the cautious sentiment in the market, which was already affected by concerns regarding the Middle East conflict and uncertainty regarding interest rates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7489.21 | Negative Crossover | Bearish
  • MA 20: 7566.74 | Negative Crossover | Bearish
  • MA 50: 7574.97 | Negative Crossover | Bearish

Simple:

  • MA 5: 7490.56 | Negative Crossover | Bearish
  • MA 20: 7602.57| Negative Crossover | Bearish
  • MA 50: 7563.36 | Negative Crossover | Bearish

RSI (Relative Strength Index): 28.42 | Selling Zone| Bearish

Stochastic Oscillator: 0.41 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 7509.7 | R2: 7654.6
  • S1: 7425.6| S2: 7252.8

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 7378.9 | Take Profit: 7252.8 | Stop Loss: 7481.7.

Elsewhere in the Indices Market

Asian stock fall, oil advance on Middle East tension.

The Shanghai composite is down at 0.74%. Overall, the Singapore MSCI down 0.68% to 274.73. Over in Hong Kong, the Hang Seng Index down 0.72% to 17,172.13. In Japan, the Nikkei 225 down 0.54% to 31,259.36, while the Topix index was down 0.38% to 2,255.65. South Korea’s Kospi down 1.69% to 2,375.00. Australia S&P/ASX 200 down 1.16% to, 6,900.70.

European shares eye sharp weekly loss on geopolitical, rate jitters

The DAX futures contract in Germany traded 1.23 lower, CAC 40 futures in France down 1.21% to 6,837.70 and the UK 100 futures contract in the U.K. down 0.87% to 7,434.05.

Wall St decline as Treasury yields surge, Powell speaks.

Thursday’s closing bell for U.S. equities was marked by a significant decline in Tesla shares following the company’s earnings and a spike in Treasury yields as Federal Reserve Chair Jerome Powell discussed monetary policy and investors began to question if interest rates would remain higher for longer.

Indexes: Dow down 0.8%, S&P 500- down 0.9%, Nasdaq down 1%.

Corporate News:

Netflix Inc (NFLX) up 16.05% at 401.77, Tesla Inc. (TSLA) down 9.30% at 220.11, Walmart Inc. (WMT) down 0.48% at 160.77. Goldman Sachs Group Inc (GS) down 0.92% at 299.19, Morgan Stanley (MS) down 2.62% at 72.92.

Key Economic Events & Data Release Today:

(CNY) PBoC Loan Prime Rate Actual 3.45%, Forecast 3.45%, Previous 4.20% at 06:45.

(JPY) National CPI (MoM) Actual 0.3%, Previous 0.2% at 05:00.

(GBP) Retail Sales (MoM) (Sep) Actual –0.9%, Forecast –0.2%, Previous 0.4% at 11:30

(CAD) Core Retail Sales (MoM) (Aug) Forecast 0.0%, Previous 1.0% at 18:00.

(USD) FOMC Member Mesters Speaks at 21:45.