. Daily Index Analysis - Global markets soar on rate-cut news.

Daily Index Analysis – Global markets soar on rate-cut news.

Daily Index Analysis – Global markets soar on rate-cut news.

21 Mar 2024

Introduction:

In global indices, Asian stocks climb as the US reaffirms its plan for rate cuts. While the Shanghai composite dips slightly, other indices show strong gains. European markets see a surge at opening following the Federal Reserve’s stance. Meanwhile, Wall Street ends positively as the Fed sustains expectations for multiple rate cuts, alleviating investor concerns.

Market In Focus for today – Dow Jones

Dow futures up points to eye fresh record.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39640.00 | Positive Crossover | Bullish
  • MA 20: 39420.67 | Positive Crossover | Bullish
  • MA 50: 39154.20 | Positive Crossover | Bullish

Simple:

  • MA 5: 39541.01 | Positive Crossover | Bullish
  • MA 20: 39351.00| Positive Crossover | Bullish
  • MA 50: 39059.08 | Positive Crossover | Bullish

RSI (Relative Strength Index): 75.2| Buying Zone| Buy

Stochastic Oscillator: 97.12| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 40109.50 | R2: 40666.98
  • S1: 39423.37| S2: 38837.30

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 39423.37 | Take Profit: 39980.85| Stop Loss: 39037.42.

S&P 500:

Stock futures ascend as the S&P 500 surpasses the 5,200 level for the first time in history.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5254.82 | Positive Crossover | Bullish
  • MA 20: 5223.66 | Positive Crossover | Bullish
  • MA 50: 5169.51 | Positive Crossover | Bullish

Simple:

  • MA 5: 5246.02 | Positive Crossover | Bullish
  • MA 20: 5215.37| Positive Crossover | Bullish
  • MA 50: 5162.32 | Positive Crossover | Bullish

RSI (Relative Strength Index): 72.86| Bullish Zone| Positive

Stochastic Oscillator: 96.81| Bullish Zone | Positive

Resistance And Support Levels:

  • R1: 5315.27 | R2: 5398.60
  • S1: 5221.25| S2: 5110.14

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5189.20 | Take Profit: 5296.04| Stop Loss: 5122.96.

FTSE 100:

FTSE 100 reached its highest level in over 10 months, boosted by the Federal Reserve’s stance; attention now turns to the Bank of England’s decision.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7775.53 | Positive Crossover | Bullish
  • MA 20: 7759.05 | Positive Crossover | Bullish
  • MA 50: 7727.40 | Positive Crossover | Bullish

Simple:

  • MA 5: 7761.63 | Positive Crossover | Bearish
  • MA 20: 7765.69| Positive Crossover | Bearish
  • MA 50: 7713.91| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.05| Buy Zone| Positive

Stochastic Oscillator: 98.2| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7755.2 | R2: 7923.7
  • S1: 7773.8| S2: 7703.7

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion: Limit Buy: 7762.4 | Take Profit: 7853.6| Stop Loss: 7713.5.

EURO Stoxx 50:

At the beginning of Thursday’s trading session, European stock markets surged following robust performances in Asia and on Wall Street. Investors welcomed the possibility of interest rate cuts in the United States.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5031.74 | Positive Crossover | Bullish
  • MA 20: 5015.17 | Positive Crossover | Bullish
  • MA 50: 4963.74| Positive Crossover | Bullish

Simple:

  • MA 5: 5023.1| Positive Crossover | Bullish
  • MA 20: 5020.6| Positive Crossover | Bullish
  • MA 50: 4965.62| Positive Crossover | Bullish

RSI (Relative Strength Index): 58.81| Buy Zone| Bullish

Stochastic Oscillator: 70.34|Buying Zone | Positive

Resistance And Support Levels:

  • R1: 5077 | R2: 5193
  • S1: 4925 | S2: 4785

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4939 | Take Profit: 5077 | Stop Loss: 4858.

Elsewhere in the Indices Market:

Asian stocks rise as US sticks to rate cut plan.

The Shanghai composite is down at 0.08%. Overall, the Singapore MSCI is up 1.62% to 294.65. Over in Hong Kong, the Hang Seng Index is up 1.93% to 16,863.10. In Japan, the Nikkei 225 was up 2.03% to 40,815.66, while the Topix index was up 1.64% to 2796.21. South Korea’s Kospi up 2.41% to 2,754.86. Australia S&P/ASX 200 is up 1.12% to, 7,782.00.

European stock markets surged at the opening after the Fed.

The DAX futures contract in Germany traded 0.34 higher, CAC 40 futures in France down 0.01% to 8,160.97 and the UK 100 futures contract in the U.K. up 0.94% to 7,809.81.

Wall Street ends higher as the Federal Reserve maintains expectations for three rate cuts.

The primary stock indexes on Wall Street concluded Wednesday’s session on a positive note as investor concerns eased, with the Federal Reserve opting to leave borrowing costs unchanged. Additionally, the Fed reinforced expectations for potential rate cuts, possibly up to three times this year.

Indexes: Dow up 1%, S&P 500- up 0.9%, Nasdaq up 1.3%.

Corporate News:

Netflix, Inc. (NFLX) is up 1.12% at 627.69, Tesla, Inc. (TSLA) is up 2.53% at 175.66, and Apple Inc. (AAPL) is up 1.47% at 178.67. Goldman Sachs Group Inc (GS) up 2.01% at 396.47, Morgan Stanley (MS) up 3.31% at 91.35.

Key Economic Events & Data Release Today:

(CHF) SNB Interest Rate Decision (Q1) Forecast 1.75%, Previous 1.75% at 04:30.

(EUR) German Manufacturing PMI (Mar) Forecast 43.1, Previous 42.5 at 04:30.

(CHF) SNB Press Conference at 04:30.

(GBP) Manufacturing PMI Forecast 47.9, Previous 47.5 at 05:30.

(GBP) BoE Interest Rate Decision (Mar) Forecast 5.25%, Previous 5.25% at 08:00.

(USD) Initial Jobless Claims Forecast 212K, Previous 209K at 08:30.

(USD) Manufacturing PMI (Mar) Forecast 51.8, Previous 52.2 at 09:45.

(USD) Existing Home Sales (Feb) Forecast 3.95M, Previous 4.00M at 10:00.