. Daily Index Analysis - Global markets mixed, US yield pressure.

Daily Index Analysis – Global markets mixed, US yield pressure.

Daily Index Analysis – Global markets mixed, US yield pressure.

02 Apr 2024

Introduction:

In the global indices market, Asian stocks show resilience as US rate cut expectations ease, driving the dollar upwards. Notable movements include gains in Hong Kong’s Hang Seng Index and Japan’s Nikkei 225, while European equities rose post-Easter. However, U.S. stocks face downward pressure as yields rise, halting the momentum from previous record highs.

Market In Focus for today – Nasdaq 100

NASDAQ 100 Continues to Grind Higher.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18490.65 | Negative Crossover | Bearish
  • MA 20: 18483.09 | Positive Crossover | Bullish
  • MA 50: 18384.23 | Positive Crossover | Bullish

Simple:

  • MA 5: 18485.70 | Negative Crossover | Bearish
  • MA 20: 18500.20| Positive Crossover | Bullish
  • MA 50: 18373.03 | Positive Crossover | Bullish

RSI (Relative Strength Index): 49.69| Buying Zone| Buy

Stochastic Oscillator: 3.81| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 18597.47 | R2: 18916.56
  • S1: 18229.82| S2: 17862.17

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 18235.52 | Take Profit: 18698.45| Stop Loss: 17995.59.

S&P 500:

On Monday, the S&P 500 experienced a slight decline, as concerns among investors emerged regarding the Federal Reserve’s potential timing for interest rate adjustments. This sentiment was exacerbated by robust manufacturing data, which led to an increase in Treasury yields.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5398.05 | Negative Crossover | Bearish
  • MA 20: 5297.70 | Positive Crossover | Bullish
  • MA 50: 5252.50 | Positive Crossover | Bullish

Simple:

  • MA 5: 5302.79 | Negative Crossover | Bearish
  • MA 20: 5297.52| Positive Crossover | Bullish
  • MA 50: 5253.36 | Positive Crossover | Bullish

RSI (Relative Strength Index): 49.25| Bullish Zone| Positive

Stochastic Oscillator: 0| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5332.94 | R2: 5398.60
  • S1: 5221.25| S2: 5110.14

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5227.28 | Take Profit: 5332.10| Stop Loss: 5163.54.

FTSE 100:

European stocks climbed as markets reopened after a holiday break, with the UK’s FTSE 100 poised to achieve a new record closing high, fueled by a surge in commodity stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7964.81 | Positive Crossover | Bullish
  • MA 20: 7927.24 | Positive Crossover | Bullish
  • MA 50: 7843.80 | Positive Crossover | Bullish

Simple:

  • MA 5: 7964.64 | Positive Crossover | Bullish
  • MA 20: 7937.52| Positive Crossover | Bullish
  • MA 50: 7816.36 | Positive Crossover | Bullish

RSI (Relative Strength Index): 69.25| Bullish Zone| Positive

Stochastic Oscillator: 48.25| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 8037.3 | R2: 8187.1
  • S1: 7906.5| S2: 7781.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 7879.3 | Take Profit: 8037.3| Stop Loss: 7789.4.

EURO STOXX 50:

On Tuesday, European equities reached unprecedented levels, while the dollar remained stable, with traders revising down their forecasts for U.S. Federal Reserve interest rate reductions. They also awaited euro zone inflation figures for insights into the European Central Bank’s future actions.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5099.87 | Positive Crossover | Bullish
  • MA 20: 5080.10 | Positive Crossover | Bullish
  • MA 50: 502615 | Positive Crossover | Bullish

Simple:

  • MA 5: 5103.1 | Positive Crossover | Bullish
  • MA 20: 5078.7| Positive Crossover | Bullish
  • MA 50: 5028.58 | Positive Crossover | Bullish

RSI (Relative Strength Index): 66.99| Bullish Zone| Positive

Stochastic Oscillator: 82.04| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 5139 | R2: 5243
  • S1: 5034| S2: 4918

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5036 | Take Profit: 5139| Stop Loss: 4977.

Elsewhere in the Indices Market:

Asian stocks advance, while the dollar strengthens as US rate cut wagers recede.

The Shanghai composite is down at 0.08%. Overall, the Singapore MSCI up 0.76% to 293.10. Over in Hong Kong, the Hang Seng Index is up 2.36% to 16,931.52. In Japan, the Nikkei 225 was up 0.09% to 39,832.91, while the Topix index was down 0.25% to 2714.45. South Korea’s Kospi up 0.19% to 2,753.16. Australia S&P/ASX 200 is up 0.11% to, 7,887.90.

European equities climb at open after Easter.

The DAX futures contract in Germany traded 0.05 higher, CAC 40 futures in France up 0.23% to 8,224.75, and the UK 100 futures contract in the U.K. up 0.34% to 7,979.75.

U.S. Stocks slip as yields move higher.

U.S. stocks concluded Monday’s trading session with mostly lower figures, marking the beginning of the second quarter. This halt in momentum follows a recent surge that propelled all three major indexes to new record peaks.

Indexes: Dow down 0.6%, S&P 500- down 0.2%, Nasdaq up 0.11%.

Corporate News:

Netflix, Inc. (NFLX) up 1.15% at 614.31, Tesla, Inc (TSLA) down 0.32% at 175.22, Apple Inc. (AAPL) down 0.85% at 170.03. Goldman Sachs Group Inc (GS) down 1.00% at 413.51, Morgan Stanley (MS) down 0.67% at 93.53.

Key Economic Events & Data Release Today:

(EUR) German Manufacturing PMI (Mar) Forecast 41.6, Previous 42.5 at 13:25.

(GBP) Manufacturing PMI (Mar) Forecast –49.9, Previous –47.5 at 14:00.

(GBP) German CPI (MoM) (Mar) Forecast 0.5, Previous 0.4% at 17:30.

(USD) JOLTs Job Openings (Feb) Forecast 8.760M, Previous 8.863M at 19:30.