. Daily Index Analysis - Global Equities Rally Amid U.S Rate Optimism.

Daily Index Analysis – Global Equities Rally Amid U.S Rate Optimism.

Daily Index Analysis – Global Equities Rally Amid U.S Rate Optimism.

08 May 2024

Introduction:

Across global indices, Asian equities surge in response to optimism spurred by U.S. rate expectations. While some markets display upward trends, others face minor dips. In Europe, stocks begin Tuesday with gains amid speculation of future interest rate reductions. Meanwhile, U.S. stock futures show minimal movement, hinting at a subdued opening following a previous rally driven by anticipation of Federal Reserve rate adjustments.

Market In Focus for today – Nasdaq 100

The NASDAQ 100 maintains its positive outlook, although a pullback is expected.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18087.30 | Positive Crossover | Bullish
  • MA 20: 18009.24 | Positive Crossover | Bullish
  • MA 50: 17887.08 | Positive Crossover | Bullish

Simple:

  • MA 5: 18116.75 | Positive Crossover | Bullish
  • MA 20: 18876.55| Positive Crossover | Bullish
  • MA 50: 17718.31 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.23| Bullish Zone| Positive


Stochastic Oscillator: 91.23| Buying Zone | Neutral

Resistance And Support Levels:

  • R1: 18342.99 | R2: 18698.45
  • S1: 17921.39| S2: 17466.73


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 17979.26 | Take Profit: 18342.99| Stop Loss: 17772.59.

S&P 500:

The S&P 500 index has recently rebounded from the support zone, indicating a probable ascent towards the resistance level.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5185.01 | Positive Crossover | Bullish
  • MA 20: 5159.43 | Positive Crossover | Bullish
  • MA 50: 5141.16 | Positive Crossover | Bullish

Simple:

  • MA 5: 5189.73 | Positive Crossover | Bullish
  • MA 20: 5137.06| Positive Crossover | Bullish
  • MA 50: 5104.99 | Positive Crossover | Bullish

RSI (Relative Strength Index): 62.92 | Bullish Zone| Positive


Stochastic Oscillator: 89.3| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5242.66 | R2: 5332.77
  • S1: 5126.18| S2: 5033.88


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5165.23 | Take Profit: 5261.17| Stop Loss: 5108.22.

FTSE 100:

London’s leading FTSE 100 stock index started at an all-time high on Wednesday, propelled by AstraZeneca, which announced a global withdrawal of its COVID-19 vaccine. Investors awaited the Bank of England’s decision on interest rates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8291.00 | Positive Crossover | Bullish
  • MA 20: 8233.49 | Positive Crossover | Bullish
  • MA 50: 8126.83 | Positive Crossover | Bullish

Simple:

  • MA 5: 8278.52 | Positive Crossover | Bullish
  • MA 20: 8223.14| Positive Crossover | Bullish
  • MA 50: 8083.30 | Positive Crossover | Bullish

RSI (Relative Strength Index): 75.76| Buy Zone| Bullish


Stochastic Oscillator: 100.00| Positive Zone | Neutral

Resistance And Support Levels:

  • R1: 8381.5 | R2: 8485.4
  • S1: 8214.8| S2: 8062.3


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8204.9 | Take Profit: 8347.2| Stop Loss: 8110.0.

Euro Stoxx 50:

European stock markets saw an increase on Wednesday, reaching new record levels, as investors processed mostly favourable quarterly corporate earnings.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4991.05 | Positive Crossover | Bullish
  • MA 20: 4997.91 | Positive Crossover | Bullish
  • MA 50: 4978.08 | Positive Crossover | Bullish

Simple:

  • MA 5: 4980.60 | Positive Crossover | Bullish
  • MA 20: 4967.10| Positive Crossover | Bullish
  • MA 50: 4966.38 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.17| Bullish Zone| Positive


Stochastic Oscillator: 100.00| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5044 | R2: 5139
  • S1: 4936| S2: 4825


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 4990 | Take Profit: 5104| Stop Loss: 4927.


Elsewhere in the Indices Market:


As markets interpreted conflicting signals from US officials, Asian stocks on Wednesday lacked direction and the dollar held steady despite lower U.S. Treasury yields.

The Shanghai composite is down at 0.61%. Overall, the Singapore MSCI down 0.87% to 301.27. Over in Hong Kong, the Hang Seng Index down 0.90% to 18,313.86. In Japan, the Nikkei 225 down 1.63% to 38,202.37, while the Topix index was down 1.45% to 2706.43. South Korea’s Kospi up 0.39% to 2,745.05. Australia S&P/ASX 200 up 0.14% to, 7,804.50.

European stocks climb while the pound weakens in anticipation of the Bank of England’s decision later this week.

The DAX futures contract in Germany traded 0.34 higher, CAC 40 futures in France up 0.81% to 8,141.44 and the UK 100 futures contract in the U.K. up 0.26% to 8,335.28.

US Stock futures decline after Dow notches longest winning streak since December

On Wednesday, stock futures showed a slight dip following the blue-chip average’s achievement of its longest winning streak since December.

Indexes: Dow up 0.46%, S&P 500-up 1.03%, Nasdaq up 1.19%.


Corporate News:

Netflix, Inc. (NFLX) up 1.51% at 606.00, Tesla, Inc (TSLA) down 3.76% at 177.81, Apple Inc. (AAPL) up 0.38% at 182.40. Goldman Sachs Group Inc (GS) up 0.03% at 443.80, Morgan Stanley (MS) up 1.05% at 95.79.



Key Economic Events & Data Release Today:

(EUR) German Industrial Production (MoM) (Mar) Forecast –0.6%, Previous 2.1% at 11:30. 

(USD) Crude Oil Inventories Forecast 1.430M, Previous 7.265M at 20:00.