. Daily Index Analysis - Global markets brace for Fed impact.

Daily Index Analysis – Global markets brace for Fed impact.

Daily Index Analysis – Global markets brace for Fed impact.

19 Mar 2024

Introduction:

Across Asian markets, Tuesday saw declines as investors grappled with looming uncertainties surrounding an impending Federal Reserve meeting. Notable shifts included a 0.72% decrease in the Shanghai Composite and a 1.24% drop in the Hang Seng Index. In Europe, markets exhibited steadiness ahead of the US Federal Reserve gathering. Wall Street ended positively, as investors balanced concerns over the Fed with excitement for AI, while Monday witnessed a surge fuelled by mega-cap stocks like Alphabet and Tesla.

Market In Focus for today – Dow Jones

At Monday’s close, US stocks surged, driven by increases in the Consumer Goods, Technology, and Telecoms sectors, lifting shares. The Dow Jones Industrial Average saw a 0.20% rise.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39167.01 | Negative Crossover | Bearish
  • MA 20: 39102.62 | Positive Crossover | Bullish
  • MA 50: 38982.86 | Positive Crossover | Bullish

Simple:

  • MA 5: 39212.55 | Negative Crossover | Bearish
  • MA 20: 39100.09| Positive Crossover | Bullish
  • MA 50: 38962.08 | Positive Crossover | Bullish

RSI (Relative Strength Index): 53.8| Buying Zone| Buy

Stochastic Oscillator: 38.65| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 39400.69 | R2: 39878.48
  • S1: 38899.60| S2: 38468.43

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38899.60 | Take Profit: 39424.00| Stop Loss: 38596.61.

S&P 500:

On Monday, the S&P 500 concluded on an upward trajectory, primarily led by the technology sector, as investors anticipated the Federal Reserve meeting and its implications for interest rates later in the week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5195.74 | Negative Crossover | Bearish
  • MA 20: 5180.89 | Positive Crossover | Bullish
  • MA 50: 5132.51 | Positive Crossover | Bullish

Simple:

  • MA 5: 5198.13 | Negative Crossover | Bearish
  • MA 20: 5177.65| Positive Crossover | Bullish
  • MA 50: 5139.47 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.96| Bullish Zone| Positive

Stochastic Oscillator: 39.65| Bullish Zone | Negative

Resistance And Support Levels:

  • R1: 5227.40 | R2: 5331.84
  • S1: 5057.96| S2: 4933.95

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5119.88 | Take Profit: 5220.98| Stop Loss: 5062.74.

FTSE 100:

UK’s FTSE indexes end flat ahead of data-packed week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7742.13 | Negative Crossover | Bearish
  • MA 20: 7737.87 | Negative Crossover | Bearish
  • MA 50: 7712.65 | Positive Crossover | Bullish

Simple:

  • MA 5: 7749.22 | Negative Crossover | Bearish
  • MA 20: 7745.24| Negative Crossover | Bearish
  • MA 50: 7703.74| Positive Crossover | Bullish

RSI (Relative Strength Index): 47.03| Buy Zone| Positive

Stochastic Oscillator: 0.43| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 7753.2 | R2: 7884.7
  • S1: 7716.8| S2: 7611.41

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: StopSell: 7701.2 | Take Profit: 7618.2| Stop Loss: 7765.3.

EURO STOXX 50:

On Tuesday, European stocks predominantly rose as investors anticipated a busy period marked by central bank decisions.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5005.9 | Negative Crossover | Bearish
  • MA 20: 4996.7 | Positive Crossover | Bullish
  • MA 50: 4946.74| Positive Crossover | Bullish

Simple:

  • MA 5: 5005.15| Negative Crossover | Bearish
  • MA 20: 4994.28| Positive Crossover | Bullish
  • MA 50: 4942.61| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.64| Buy Zone| Bullish

Stochastic Oscillator: 3.98|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5043 | R2:5136
  • S1: 4933 | S2: 4813

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4931 | Take Profit: 5037 | Stop Loss: 4863.

Elsewhere in the Indices Market:

On Tuesday, most Asian stocks experienced declines, amid persistent anxiety over an upcoming Federal Reserve meeting.

The Shanghai composite is down at 0.72%. Overall, the Singapore MSCI up 0.16% to 290.62. Over in Hong Kong, the Hang Seng Index is down 1.24% to 16,529.48. In Japan, the Nikkei 225 was up 0.66% to 40,003.60, while the Topix index was up 1.06% to 2750.97. South Korea’s Kospi down 1.10% to 2,656.17. Australia S&P/ASX 200 is up 0.36% to, 7,703.20.

European stock markets showed stability at the beginning of Tuesday’s trading session before a US Federal Reserve meeting.

The DAX futures contract in Germany traded 0.24 higher, CAC 40 futures in France up 0.31% to 8,173.54,, and the UK 100 futures contract in the U.K. down 0.01% to 7,721.45.

Wall Street closed on a positive note as investors managed to navigate apprehension regarding the Federal Reserve alongside their enthusiasm for AI.

On Monday, the primary indexes of Wall Street concluded on an upward trend, buoyed by Mega-cap growth stocks like Alphabet and Tesla, which aided in the recovery of the technology-centric Nasdaq. Simultaneously, investors awaited the US Federal Reserve’s meeting with anticipation.

Indexes: Dow down 0.07%, S&P 500- up 0.63%, Nasdaq up 0.82%.

Corporate News:

Netflix, Inc. (NFLX) is up 2.06% at 618.39, Tesla, Inc. (TSLA) is up 6.31% at 173.88, and Apple Inc. (AAPL) is up 0.64% at 173.72. Goldman Sachs Group Inc (GS) is down 0.73% at 384.37, and Morgan Stanley (MS) is down 0.48% at 87.86.

Key Economic Events & Data Release Today:

(JPY) Industrial Production (MoM) (Jan) Forecast –7.5%, Previous 1.4% at 00:30.

(JPY) BoJ Press Conference at 02:00.

(EUR) German ZEW Economic Sentiment (Mar) Forecast 20.6, Previous 19.9 at 06:00.

(USD) Building Permits (Feb) Forecast 1.500M, Previous 1.489M at 08:30.

(CAD) Core CPI (MoM) (Feb) Previous 0.1% at 08:30.

(CNY) PBoC Loan Prime Rate Forecast 3.45%, Previous 3.45% at 21:15.