. Daily Index Analysis - Global Indices Climb Amid Speculation of Fed Rate Cuts.

Daily Index Analysis – Global Indices Climb Amid Speculation of Fed Rate Cuts.

Daily Index Analysis – Global Indices Climb Amid Speculation of Fed Rate Cuts.

06 May 2024

Introduction:

In the realm of global indices, Asian markets ascend amidst growing speculation surrounding potential Federal Reserve rate cuts. The Shanghai composite leads with a 1.16% gain, while Singapore’s MSCI rises 0.62%. European stocks follow suit, bolstered by gains in the energy sector and optimism regarding interest rate adjustments. Meanwhile, U.S. stock index futures hint at continued upward momentum, reflecting trader anticipation of potential rate cuts by the Federal Reserve.

Market In Focus for today – Nasdaq 100

NASDAQ tested multi-week highs as Apple rallied.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17882.72 | Positive Crossover | Bullish
  • MA 20: 17800.68 | Positive Crossover | Bullish
  • MA 50: 17808.07 | Positive Crossover | Bullish

Simple:

  • MA 5: 17810.74 | Positive Crossover | Bullish
  • MA 20: 17788.79| Positive Crossover | Bullish
  • MA 50: 17698.35 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.86| Bullish Zone| Positive


Stochastic Oscillator: 97.22| Buying Zone | Positive

Resistance And Support Levels:

  • R1: 18330.72 | R2: 18706.72
  • S1: 17914.08| S2: 17365.32


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 17940.32 | Take Profit: 18329.07| Stop Loss: 17745.94.

S&P 500:

The S&P 500 closed above the 5100 mark as traders wagered on a Federal Reserve leaning towards dovish policies following the release of underwhelming job market data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5136.49 | Positive Crossover | Bullish
  • MA 20: 5120.89 | Positive Crossover | Bullish
  • MA 50: 5123.44 | Positive Crossover | Bullish

Simple:

  • MA 5: 5122.05 | Positive Crossover | Bullish
  • MA 20: 5117.91| Positive Crossover | Bullish
  • MA 50: 5096.05 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.54 | Bullish Zone| Positive


Stochastic Oscillator: 98.42| 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 : 5148.16 | Take Profit: 5251.45| Stop Loss: 5093.22.

FTSE 100:

FTSE 100 receives a boost as investors keep a close watch on potential rate cuts.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8197.04 | Positive Crossover | Bullish
  • MA 20: 8161.63 | Positive Crossover | Bullish
  • MA 50: 8078.08 | Positive Crossover | Bullish

Simple:

  • MA 5: 8183.27 | Positive Crossover | Bullish
  • MA 20: 8171.09| Positive Crossover | Bullish
  • MA 50: 8045.75 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.4| Buy Zone| Bullish


Stochastic Oscillator: 80.23| Positive Zone | Positive

Resistance And Support Levels:

  • R1: 8270.1 | R2: 8399.8
  • S1: 8134.5| S2: 8019.5


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8189.4 | Take Profit: 8262.6| Stop Loss: 8145.9.

Euro Stoxx 50:

On Monday, European shares experienced an uptick, driven by renewed investor confidence in potential interest rate cuts by major central banks. Additionally, Spanish defence and technology company  surged after reporting robust first-quarter profits.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4947.47 | Positive Crossover | Bullish
  • MA 20: 4954.21 | Positive Crossover | Bullish
  • MA 50: 4970.18 | Negative Crossover | Bearish

Simple:

  • MA 5: 4930.08 | Positive Crossover | Bullish
  • MA 20: 4959.05| Positive Crossover | Bullish
  • MA 50: 4963.92 | Negative Crossover | Bearish

RSI (Relative Strength Index): 51.11| Bullish Zone| Positive


Stochastic Oscillator: 63.05| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 5047 | R2: 5139
  • S1: 4931| S2: 4825


Overall Sentiment: Neutral | Market Direction: Buy


Trade Suggestion:  Buy Limit : 4945 | Take Profit: 5046| Stop Loss: 4888.


Elsewhere in the Indices Market:


Asia shares climb as speculation grows regarding potential rate cuts by the Federal Reserve.

The Shanghai composite is up at 1.16%. Overall, the Singapore MSCI up 0.62% to 305.43. Over in Hong Kong, the Hang Seng Index up 0.55% to 18,578.30. In Japan, the Nikkei 225 down 0.10% to 38,236.07, while the Topix index was down 0.03% to 2728.53. South Korea’s Kospi down 0.26% to 2,676.63. Australia S&P/ASX 200 up 0.70% to, 7,682.40.

European stocks rise fuelled by energy sector gains and optimism regarding potential interest rate cuts.

The DAX futures contract in Germany traded 0.79 higher, CAC 40 futures in France up 0.67% to 8,010.64 and the UK 100 futures contract in the U.K. up 0.51% to 8,213.49.

On Monday, U.S. stock index futures showed a slight increase, indicating the potential for further advances on Wall Street.

On Monday, U.S. stock index futures saw a slight uptick, suggesting further upward movement on Wall Street following a rally driven by jobs data in the previous session. Traders factored in an increased likelihood of the Federal Reserve reducing interest rates this year.

Indexes: Dow up 0.32%, S&P 500-up 0.33%, Nasdaq up 0.23%.


Corporate News:

Netflix, Inc. (NFLX) up 2.51% at 579.34, Tesla, Inc (TSLA) up 0.63% at 181.14, Apple Inc. (AAPL) up 5.97% at 183.36. Goldman Sachs Group Inc (GS) up 1.30% at 438.18, Morgan Stanley (MS) up 1.07% at 93.64.



Key Economic Events & Data Release Today:

(EUR) German Service PMI (Apr) Forecast 53.5, Previous 50.1 at 13:25.

(USD) FOMC Member Williams Speaks at 22:30.