. Daily Index Analysis - Global markets soar, hitting record highs.

Daily Index Analysis – Global markets soar, hitting record highs.

Daily Index Analysis – Global markets soar, hitting record highs.

16 Feb 2024

Introduction:

Across global indices, Asian markets reflect the positive sentiment from Wall Street’s overnight gains. Notable increases include the Hang Seng Index in Hong Kong rising by 2.48%, the Nikkei 225 in Japan up by 0.86%, and the Shanghai composite showing a 1.28% gain. European stocks continue their upward trajectory, boosted by UK retail sales surpassing expectations. Meanwhile, Wall Street wraps up the session with gains, driven by optimism sparked by a significant retail sales decline, raising hopes for potential future rate cuts by the Federal Reserve.

Market In Focus for today – Dow Jones

The Dow Jones experienced an upswing driven by increasing interest in financial and industrial stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38669.34 | Positive Crossover | Bullish
  • MA 20: 38674.02 | Positive Crossover | Bullish
  • MA 50: 38549.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 38562.12 | Positive Crossover | Bullish
  • MA 20: 38674.01| Positive Crossover | Bullish
  • MA 50: 38549.32 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.51| Buy Zone| Buy

Stochastic Oscillator: 81.43| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 39013.33 | R2: 39534.75
  • S1: 38231.22| S2: 37479.77

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy : 38323.23 | Take Profit: 38875.31| Stop Loss: 37985.84.

S&P 500:

The S&P 500 is on an upward trajectory as traders respond to U.S. economic reports, with a notable 0.8% month-over-month decline in Retail Sales for January.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5009.82 | Positive Crossover | Bullish
  • MA 20: 5014.70 | Positive Crossover | Bullish
  • MA 50: 4966.75 | Positive Crossover | Bullish

Simple:

  • MA 5: 5008.49 | Positive Crossover | Bullish
  • MA 20: 5014.72| Positive Crossover | Bullish
  • MA 50: 4966.75| Positive Crossover | Bullish

RSI (Relative Strength Index): 65.69| Bullish Zone| Positive

Stochastic Oscillator: 69.78| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 5060.44 | R2: 5148.96
  • S1: 4961.44| S2: 4862.27

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 4970.63 | Take Profit: 5059.44| Stop Loss: 4918.01.

FTSE 100:

The index has experienced two consecutive days of gains, recovering from the losses incurred on Tuesday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7619.10 | Positive Crossover | Bullish
  • MA 20: 7599.26 | Positive Crossover | Bullish
  • MA 50: 7630.03 | Positive Crossover | Bullish

Simple:

  • MA 5: 7589.73 | Positive Crossover | Bullish
  • MA 20: 7599.00| Positive Crossover | Bullish
  • MA 50: 7630.02| Positive Crossover | Bullish

RSI (Relative Strength Index): 64.38| Buy Zone| Bullish

Stochastic Oscillator: 100.00| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7697.0 | R2: 7788.1
  • S1: 7607.8| S2: 7511.1

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7713.7 | Take Profit: 7788.1| Stop Loss: 7671.0.

Dax 40:

The consolidation observed in late January and early February has transformed into an upward movement, with the index surpassing 17,000 and achieving a new record high.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17090.31 | Positive Crossover | Bullish
  • MA 20: 17041.95 | Positive Crossover | Bullish
  • MA 50: 17032.68 | Positive Crossover | Bullish

Simple:

  • MA 5: 17040.08| Positive Crossover | Bullish
  • MA 20: 17041.95| Positive Crossover | Bullish
  • MA 50: 17032.68| Positive Crossover | Bullish

RSI (Relative Strength Index): 65.77| Buy Zone| Bullish

Stochastic Oscillator: 97.92|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 17245.00 | R2: 17578.6
  • S1: 16857.2| S2: 16505.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 16938.4 | Take Profit: 17245.0| Stop Loss: 16758.0.

Elsewhere in the Indices Market:

Asian markets register upward movement, mirroring the positive trend on Wall Street overnight.

The Shanghai composite is up at 1.28%. Overall, the Singapore MSCI up 1.93% to 288.55. Over in Hong Kong, the Hang Seng Index up 2.48% to 16,339.96. In Japan, the Nikkei 225 up 0.86% to 38,487.24, while the Topix index was up 1.27% to 2624.73. South Korea’s Kospi up 1.34% to 2,613.80. Australia S&P/ASX 200 up 0.69% to, 7,658.30.

European stocks continue their upward momentum, with UK retail sales surpassing expectations.

The DAX futures contract in Germany traded 0.48 higher, CAC 40 futures in France up 0.53% to 7,784.13 and the UK 100 futures contract in the U.K. up 1.10% to 0.53%.

Wall Street concludes the session with gains fuelled by the slump in retail sales, sparking hopes for potential rate cuts.

U.S. stocks ended the day in positive territory on Thursday, propelled by a greater-than-anticipated decline in retail sales, fostering expectations that the Federal Reserve may initiate interest rate cuts in the months ahead.

Indexes: Dow up 0.91%, S&P 500- up 0.58%, Nasdaq up 0.3%.

Corporate News:

Netflix, Inc. (NFLX) up 2.44% at 593.46, Tesla, Inc (TSLA) up 6.22% at 200.45, Apple Inc. (AAPL) down 0.16% at 183.86. Goldman Sachs Group Inc (GS) up 1.95% at 385.42, Morgan Stanley (MS) up 1.99% at 85.67.

Key Economic Events & Data Release Today:

(GBP) Retail Sales (MoM) (Jan) Forecast 1.5%, Previous –3.2% at 02:00.

(CAD) Wholesale Sales (MoM) (Dec) Forecast 0.7%, Previous 0.9% at 08:30.

(USD) Building Permits (Jan) Forecast 1.509M, Previous 1.493M at 08:30.

(USD) PPI (MoM) (Jan) Forecast 0.1%, Previous –0.1% at 08:30