. Daily Index Analysis - Global markets plummet amid geopolitical tensions.

Daily Index Analysis – Global markets plummet amid geopolitical tensions.

Daily Index Analysis – Global markets plummet amid geopolitical tensions.

16 Apr 2024

Introduction:

Global stock markets experience declines as investors reassess expectations surrounding Federal Reserve rate cuts. Asian indices, including the Shanghai composite and Nikkei 225, record losses, while European markets, such as the DAX and CAC 40 futures, continue their downward trend amidst Middle East tensions. In the U.S., stocks close lower, impacted by geopolitical concerns and Treasury yield fluctuations following a strong retail sales report.

Market In Focus for today – Dow Jones

Early on Tuesday, Dow Jones futures dipped slightly.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38382.11 | Negative Crossover | Bearish
  • MA 20: 38575.05 | Negative Crossover | Bearish
  • MA 50: 39009.26 | Negative Crossover | Bearish

Simple:

  • MA 5: 38313.15 | Negative Crossover | Bearish
  • MA 20: 38678.00| Negative Crossover | Bearish
  • MA 50: 39301.19 | Negative Crossover | Bearish

RSI (Relative Strength Index): 25.52| Sell Zone| Bearish

Stochastic Oscillator: 28.65| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 38280.00 | R2: 38931.59
  • S1: 37643.50| S2: 37037.43


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Sell Limit: 38143.42 | Take Profit: 37651.61| Stop Loss: 38529.66.

S&P 500:

As violence escalates in the Middle East, the S&P 500 reaches its lowest point in two months, heightening anxiety among investors.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5154.40 | Negative Crossover | Bearish
  • MA 20: 5187.12 | Negative Crossover | Bearish
  • MA 50: 5218.34 | Negative Crossover | Bearish

Simple:

  • MA 5: 5169.67 | Negative Crossover | Bearish
  • MA 20: 5204.09| Negative Crossover | Bearish
  • MA 50: 5248.01 | Negative Crossover | Bearish

RSI (Relative Strength Index): 29.66| Selling Zone| Negative


Stochastic Oscillator: 0| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5200.94 | R2: 5327.28
  • S1: 5060.86| S2: 4937.26


Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Sell Limit : 5165.23 | Take Profit: 5060.86| Stop Loss: 5244.88.

FTSE 100:

Today, European markets witness a significant decline, with the FTSE 100 index dropping by 1.5%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7934.09 | Negative Crossover | Bearish
  • MA 20: 7945.63 | Negative Crossover | Bearish
  • MA 50: 7918.09 | Negative Crossover | Bearish

Simple:

  • MA 5: 7949.62 | Negative Crossover | Bearish
  • MA 20: 7958.06| Negative Crossover | Bearish
  • MA 50: 7944.87 | Negative Crossover | Bearish

RSI (Relative Strength Index): 39.52| Bearish Zone| Negative


Stochastic Oscillator: 0| Negative Zone | Negative

Resistance And Support Levels:

  • R1: 7959.8 | R2: 8063.1
  • S1: 7851.8| S2: 7720.3


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 7882.3 | Take Profit: 7757.8| Stop Loss: 7964.5.

DAX 40:

On Tuesday, European equities experienced a decline amidst a worldwide sell-off, fueled by diminishing expectations of swift US interest rate reductions and escalating concerns regarding the possibility of broader conflict in the Middle East. The DAX 40 displayed mixed performance amid these developments.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18004.18 | Negative Crossover | Bearish
  • MA 20: 18120.95 | Negative Crossover | Bearish
  • MA 50: 18271.09 | Negative Crossover | Bearish

Simple:

  • MA 5: 17993.06 | Negative Crossover | Bearish
  • MA 20: 18085.98 | Negative Crossover | Bearish
  • MA 50: 18144.34 | Negative Crossover | Bearish

RSI (Relative Strength Index): 35.08| Sell Zone| Bearish


Stochastic Oscillator: 36.12| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 18131.2 | R2: 18616.6
  • S1: 17721.8 | S2: 17198.5

Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 17941.5 | Take Profit: 17662.3 | Stop Loss: 18135.3.

Elsewhere in the Indices Market:

Asian stock markets decline as investors reassess expectations for Federal Reserve rate cuts.

The Shanghai composite is down at 1.65%. Overall, the Singapore MSCI down 1.22% to 284.35. Over in Hong Kong, the Hang Seng Index down 2.12% to 16,248.97. In Japan, the Nikkei 225 down 1.94% to 38,471.20, while the Topix index was down 2.04% to 2697.11. South Korea’s Kospi down 2.28% to 2,609.63. Australia S&P/ASX 200 down 1.81% to, 7,612.50.

European stock markets continue to fall amidst ongoing tensions in the Middle East.

The DAX futures contract in Germany traded 1.43 lower, CAC 40 futures in France down 1.26% to 7,944.00 and the UK 100 futures contract in the U.K. down 1.35% to 7,857.92.

U.S. Stocks conclude the trading session with losses, influenced by tensions in the Middle East and fluctuations in Treasury yields.

On Monday, U.S. stocks ended significantly lower, with initial gains driven by robust retail sales giving way to increased Treasury yields and apprehensions regarding escalating geopolitical tensions between Iran and Israel.

Indexes: Dow down 0.65%, S&P 500- down 1.2%, Nasdaq down 1.79%.

Corporate News:

Netflix, Inc. (NFLX) down 2.52% at 607.15, Tesla, Inc (TSLA) down 0.59% at 161.48, Apple Inc. (AAPL) down 2.19% at 172.69. Goldman Sachs Group Inc (GS) up 2.92% at 400.88, Morgan Stanley (MS) up 0.93% at 86.99.

Key Economic Events & Data Release Today:

(CNY) GDP (YoY) (Q1) Forecast –4.8%, Previous –5.2% at 07:30.

(CNY) Industrial Production (YoY) (Mar) Forecast 6.0%, Previous 7.0% at 07:30

(GBP) Average Earnings Index =+ Bonus (Feb) Forecast 5.5%, Previous 5.6% at 11:30.

(USD) Building Permits (Mar) Forecast 1.514M, Previous 1.524M at 18:00.

(CAD) Core CPI (MoM) (Mar) Previous 0.1% at 18:00.

(GBP) BoE Gov Bailey Speaks at 22:30.

(USD) Fed Chair Powell Speaks at 22:45.