. Daily Index Analysis - Global Markets React to Fed Decision.

Daily Index Analysis – Global Markets React to Fed Decision.

Daily Index Analysis – Global Markets React to Fed Decision.

02 May 2024

Introduction:

Asian markets are displaying volatility after the Federal Reserve opted to maintain the current interest rates. European equities experienced a slight dip on Thursday in reaction to the recent monetary policy decision from the U.S. Federal Reserve, sparking responses across global markets. On Thursday, U.S. stock futures surged following the turbulence surrounding the Federal Reserve’s decisions, as investors momentarily set aside concerns about interest rates to focus on the upcoming Apple (AAPL) earnings release and the imminent monthly jobs report.

Market In Focus for today – Nasdaq 100

NASDAQ 100 Continues to Look for Support.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17614.38 | Negative Crossover | Bearish
  • MA 20: 17648.18 | Negative Crossover | Bearish
  • MA 50: 17765.95 | Negative Crossover | Bearish

Simple:

  • MA 5: 17668.83 | Negative Crossover | Bearish
  • MA 20: 17680.15| Negative Crossover | Bearish
  • MA 50: 17749.32 | Negative Crossover | Bearish

RSI (Relative Strength Index): 45.09| Neutral Zone| Neutral


Stochastic Oscillator: 18.1| Selling Zone | Neutral

Resistance And Support Levels:

  • R1: 17634.99 | R2: 18072.01
  • S1: 17145.95| S2: 16667.32


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Sell Limit: 17770.26 | Take Profit: 17218.79| Stop Loss: 18072.01.

S&P 500:

Traders are keeping a close eye on the S&P 500 as they await updates on jobless claims, labour costs, trade deficit figures, and earnings reports from Apple and Amgen.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5085.42 | Negative Crossover | Bearish
  • MA 20: 5092.59 | Negative Crossover | Bearish
  • MA 50: 5121.17 | Negative Crossover | Bearish

Simple:

  • MA 5: 5094.39 | Negative Crossover | Bearish
  • MA 20: 5101.62| Negative Crossover | Bearish
  • MA 50: 5104.72 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.01 | Neutral Zone| Neutral


Stochastic Oscillator: 24.7| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 5102.06 | R2: 5222.91
  • S1: 5005.93| S2: 4871.36


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5124.03 | Take Profit: 5005.93| Stop Loss: 5211.92.

FTSE 100:

FTSE 100 climbs as Shell and Standard Chartered report robust earnings.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8156.34 | Positive Crossover | Bullish
  • MA 20: 8129.16 | Positive Crossover | Bullish
  • MA 50: 8052.41 | Positive Crossover | Bullish

Simple:

  • MA 5: 8164.38 | Positive Crossover | Bullish
  • MA 20: 8140.34| Positive Crossover | Bullish
  • MA 50: 8026.29 | Positive Crossover | Bullish

RSI (Relative Strength Index): 59.26| Buy Zone| Bullish


Stochastic Oscillator: 20.66| Negative Zone | Neutral

Resistance And Support Levels:

  • R1: 8223.5 | R2: 8349.0
  • S1: 8066.7| S2: 7897.3


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8082.4 | Take Profit: 8223.5| Stop Loss: 8000.8.

Euro Stoxx 50:

European stock markets experienced a slight dip on Thursday, influenced by global market responses to the U.S. Federal Reserve’s recent monetary policy announcement and a wave of corporate earnings reports.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8156.34 | Negative Crossover | Bearish
  • MA 20: 8129.16 | Negative Crossover | Bearish
  • MA 50: 8052.41 | Negative Crossover | Bearish

Simple:

  • MA 5: 4971.6 | Negative Crossover | Bearish
  • MA 20: 4983.4| Negative Crossover | Bearish
  • MA 50: 4975.6 | Negative Crossover | Bearish

RSI (Relative Strength Index): 40.37| Sell Zone| Bearish


Stochastic Oscillator: 4.31| Negative Zone | Negative

Resistance And Support Levels:

  • R1: 5011 | R2: 5142
  • S1: 4876| S2: 4748


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 4936 | Take Profit: 4822| Stop Loss: 5018.


Elsewhere in the Indices Market:


Asian markets show instability following the Federal Reserve’s decision to maintain the existing interest rates.

The Shanghai composite is down at 0.26%. Overall, the Singapore MSCI down 1.70% to 297.95. Over in Hong Kong, the Hang Seng Index up 2.50% to 18,207.13. 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 0.31% to 2,683.65. Australia S&P/ASX 200 up 0.23% to, 7,587.00.

European equities dipped marginally on Thursday in response to the recent monetary policy decision from the U.S. Federal Reserve, prompting reactions across global markets.

The DAX futures contract in Germany traded 0.08 higher, CAC 40 futures in France down 0.62% to 7,935.08 and the UK 100 futures contract in the U.K. up 0.41% to 8,154.34.

US futures are on the rise as Fed rate-hike fears fade, with Apple on deck.

On Thursday, US stock futures surged following the turbulence surrounding the Federal Reserve’s decisions, as investors temporarily put aside concerns about interest rates to concentrate on the upcoming Apple (AAPL) earnings release and the imminent monthly jobs report.

Indexes: Dow up 0.4%, S&P 500-up 0.7%, Nasdaq up 0.9%.


Corporate News:

Netflix, Inc. (NFLX) up 0.19% at 551.71, Tesla, Inc (TSLA) down 1.79% at 180.00, Apple Inc. (AAPL) down 0.60% at 169.30. Goldman Sachs Group Inc (GS) up 0.056% at 426.95, Morgan Stanley (MS) up 0.77% at 91.54.



Key Economic Events & Data Release Today:

(USD) FOMC Conference at 00:00.

(EUR) German Manufacturing PMI (Apr) Forecast 42.2, Previous 41.9 at 13:25.

(USD) Initial Jobless Claims Forecast 212K, Previous 207K at 18:00.