. Daily Index Analysis - FTSE 100 Turmoil, Luxury Sector Plunge and More

Daily Index Analysis – FTSE 100 Turmoil, Luxury Sector Plunge and More

Daily Index Analysis – FTSE 100 Turmoil, Luxury Sector Plunge and More

25 Oct 2023

Introduction:

In the global indices market, Asian stocks are experiencing a boost on the back of China’s spending plans, with various indices showing mixed performance. Meanwhile, European shares are slipping due to a combination of mixed earnings reports and pressure on energy stocks. On Wall Street, strong corporate earnings and positive forecasts powered a surge, driving the market to close on a high note.

Market In Focus for today – FTSE 100.

On Wednesday, European stock markets witnessed a decline, primarily driven by weakness in the luxury sector following disappointing sales results from Kering. Additionally, investors grappled with a range of earnings reports that presented a mixed picture, all against the backdrop of concerns regarding decelerating growth in the Eurozone.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7395.17 | Positive Crossover | Bullish
  • MA 20: 7457.09 | Negative Crossover | Bearish
  • MA 50: 7516.03 | Negative Crossover | Bearish

Simple:

  • MA 5: 7387.82 | Positive Crossover | Bullish
  • MA 20: 7485.30| Negative Crossover | Bearish
  • MA 50: 7525.19 | Negative Crossover | Bearish

RSI (Relative Strength Index): 37.52 | Selling Zone| Bearish

Stochastic Oscillator: 58.57 | Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7504.3 | R2: 7620.7
  • S1: 7389.9| S2: 7223.6

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 7354.6 | Take Profit: 7223.6| Stop Loss: 7456.5.

Elsewhere in the Indices Market

Asian stock bounce on China spending plans.

The Shanghai composite is up at 0.40%. Overall, the Singapore MSCI up 0.04% to 276.07. Over in Hong Kong, the Hang Seng Index down 1.05% to 16,991.53. In Japan, the Nikkei 225 up 0.67% to 31,269.92, while the Topix index was up 0.61% to 2,254.40. South Korea’s Kospi down 0.85% to 2,363.17. Australia S&P/ASX 200 down 0.38% to, 6,854.30.

European shares slip on mixed earnings, energy stock drag.

The DAX futures contract in Germany traded 0.06 lower, CAC 40 futures in France down 0.17% to 6,881.73 and the UK 100 futures contract in the U.K. up 0.07% to 7,394.55.

Wall St surges to close higher, powered by upbeat earnings.

On Tuesday, a wave of strong corporate earnings and optimistic outlooks fuelled investor confidence and triggered a widespread market rally, leading to a higher close on Wall Street.

Indexes: Dow up 0.62%, S&P 500- up 0.73%, Nasdaq up 0.93%.

Corporate News:

Netflix Inc (NFLX) up 1.69% at 413.73, Tesla Inc. (TSLA) up 2.09% at 216.52, Walmart Inc. (WMT) up 1.39% at 163.25. Goldman Sachs Group Inc (GS) down 0.01% at 299.18, Morgan Stanley (MS) down 0.20% at 71.56.

Key Economic Events & Data Release Today:

(AUD) CPI (QoQ) (Q3) Actual 1.2%, Forecast 1.1%, Previous 0.8% at 06:00.

(USD) Building Permits Forecast 1.473M, Previous 1.541M at 17:30.

(USD) New Home Sales (Sep) Forecast 680K, Previous 675K at 19:30.

(CAD) BoC Interest Rate Decision Forecast 5.00%, Previous 5.00% at 19:30.

(USD) Crude Oil Inventories Forecast 0.239M, Previous –4.491M at 20:00.

(EUR) ECB president Lagarde Speaks at 22:30