. Daily Index Analysis - Global markets react to Asian surge, U.S. inflation.

Daily Index Analysis – Global markets react to Asian surge, U.S. inflation.

Daily Index Analysis – Global markets react to Asian surge, U.S. inflation.

12 Mar 2024

Introduction:

In the global indices landscape, most Asian stocks recorded gains in anticipation of an imminent U.S. inflation report. While the Hang Seng Index surged 3.05% in Hong Kong, European equities faced a dip, driven by a tech stock decline. Meanwhile, the S&P 500 and Nasdaq closed slightly lower, with investors eagerly awaiting the release of CPI and PPI data to gauge the likelihood of Federal Reserve interest rate cuts.

Market In Focus for today – Dow Jones

Dow Jones futures are higher ahead of Tuesday’s stock market open.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38767.28 | Negative Crossover | Bearish
  • MA 20: 38796.01 | Negative Crossover | Bearish
  • MA 50: 38809.63 | Positive Crossover | Bullish

Simple:

  • MA 5: 38763.84 | Negative Crossover | Bearish
  • MA 20: 38773.20| Negative Crossover | Bearish
  • MA 50: 38891.57 | Positive Crossover | Bullish

RSI (Relative Strength Index): 47.93| Neutral Zone| Neutral

Stochastic Oscillator: 91.79| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38877.35 | R2: 39326.47
  • S1: 38498.41| S2: 38091.40

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: Limit Sell: 38989.63 | Take Profit: 38498.41| Stop Loss: 39326.47.

S&P 500:

S&P 500 futures inched up on Tuesday ahead of U.S. consumer prices.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5130.68 | Negative Crossover | Bearish
  • MA 20: 5125.14 | Positive Crossover | Bullish
  • MA 50: 5095.22 | Positive Crossover | Bullish

Simple:

  • MA 5: 5138.09 | Positive Crossover | Bullish
  • MA 20: 5127.29| Positive Crossover | Bullish
  • MA 50: 5095.67 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.03| Bullish Zone| Positive

Stochastic Oscillator: 32.18| Bearish Zone | Positive

Resistance And Support Levels:

  • R1: 5171.09 | R2: 5247.24
  • S1: 5057.96| S2: 4933.95

Overall Sentiment: Neutral| Market Direction: Buy

Trade Suggestion:  Limit Sell: 5094.07 | Take Profit: 5185.49| Stop Loss: 5044.84.

FTSE 100:

FTSE 100 was solidly higher, while the pound was weakened by jobs data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7700.93 | Positive Crossover | Bullish
  • MA 20: 7688.76 | Positive Crossover | Bullish
  • MA 50: 7676.12 | Positive Crossover | Bullish

Simple:

  • MA 5: 7694.99 | Positive Crossover | Bullish
  • MA 20: 7679.19| Positive Crossover | Bullish
  • MA 50: 7688.36| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.98| Buy Zone| Positive

Stochastic Oscillator: 93.21| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7778.8 | R2: 7884.7
  • S1: 7689.6| S2: 7604.1

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: StopBuy: 7752.8 | Take Profit: 7853.1| Stop Loss: 7700.7.

EURO STOXX 50:

European shares faced a significant technology sector sell-off on Monday, leading to investor caution ahead of a crucial U.S. inflation report later this week, influencing expectations for potential interest rate cuts.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4949.47 | Negative Crossover | Bearish
  • MA 20: 4937.15 | Positive Crossover | Bullish
  • MA 50: 4885.47| Positive Crossover | Bullish

Simple:

  • MA 5: 4959.02| Negative Crossover | Bearish
  • MA 20: 4937.45| Positive Crossover | Bullish
  • MA 50: 4888.66| Positive Crossover | Bullish

RSI (Relative Strength Index): 56.17| Buy Zone| Bullish

Stochastic Oscillator: 22.68|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4995 | R2: 5078
  • S1: 4917| S2: 4800

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4892 | Take Profit: 4989| Stop Loss: 4828.

Elsewhere in the Indices Market:

Most Asian stocks see gains in anticipation of a forthcoming U.S. inflation report.

The Shanghai composite is down at 0.41%. Overall, the Singapore MSCI is down 0.7% to 286.05. Over in Hong Kong, the Hang Seng Index is up 3.05% to 17,093.50. In Japan, the Nikkei 225 was down 0.06% to 38,797.51, while the Topix index was down 0.36% to 2657.24. South Korea’s Kospi down 0.83% to 2,681.81. Australia S&P/ASX 200 is up 0.11% to, 7,712.50.

A decline in tech stocks pulls down European equities, with investors awaiting U.S. inflation data.

The DAX futures contract in Germany traded 0.24 higher, CAC 40 futures in France up 0.07% to 8,025.40 and the UK 100 futures contract in the U.K. up 0.83% to 7,733.17.

The S&P 500 and Nasdaq close lower as investors anticipate the release of CPI and PPI data.

The S&P 500 and Nasdaq closed marginally lower on Monday as investors geared up for upcoming consumer and producer price data, seeking insights into potential Federal Reserve interest rate cuts soon.

Indexes: Dow up 0.01%, S&P 500- down 0.1%, Nasdaq down 0.4%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.64% at 600.93, Tesla, Inc. (TSLA) is up 1.39% at 177.77, and Apple Inc. (AAPL) is up 1.18% at 172.75. Goldman Sachs Group Inc (GS) is down 0.21% at 386.16, and Morgan Stanley (MS) is down 0.11% at 86.94.

Key Economic Events & Data Release Today:

(GBP) Average Earnings Index + Bonus (Jan) Forecast 5.7%, Previous 5.8% at 03:00.

(EUR) German CPI (MoM) (Feb) Forecast 0.4%, Previous 0.2% at 03:00.

(USD) Core CPI (MoM) (Feb) Forecast 0.3%, Previous 0.4% at 08:30.

(USD) CPI (MoM) (Feb) Forecast 0.4%, Previous 0.3% at 08:30.

(USD) CPI (YoY) (Feb) Forecast 3.1%, Previous 3.1% at 08:30.