. Daily Index Analysis - Global markets sway, investors eye Powell.

Daily Index Analysis – Global markets sway, investors eye Powell.

Daily Index Analysis – Global markets sway, investors eye Powell.

07 Mar 2024

Introduction:

Global markets experienced mixed results as Asian stocks displayed diverse performances following a recent downturn on Wall Street. In Europe, major stock markets stabilized at the opening influenced by the varied performance in Asia. Meanwhile, U.S. stocks close positively, and Treasury yields decrease as Federal Reserve Chair Jerome Powell assures investors of potential rate cuts in the coming months.

Market In Focus for today – Dow Jones

On Thursday, U.S. stock futures showed a mix of results, with investors anticipating additional Congressional testimony from Federal Reserve Chairman Jerome Powell. The Dow Jones Industrial Average gained 37 points, or 0.1%, following a 75-point increase on Wednesday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38764.12 | Negative Crossover | Bearish
  • MA 20: 38842.86 | Negative Crossover | Bearish
  • MA 50: 38826.32 | Negative Crossover | Bearish

Simple:

  • MA 5: 38777.04 | Negative Crossover | Bearish
  • MA 20: 38897.25| Negative Crossover | Bearish
  • MA 50: 38869.63 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.02| Buy Zone| Buy

Stochastic Oscillator: 25.89| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 38865.09 | R2: 39329.70
  • S1: 38324.87| S2: 37611.02

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: Limit Sell: 38789.45 | Take Profit: 38314.04| Stop Loss: 39146.01.

S&P 500:

On Thursday, the S&P 500 inched higher as investors anticipated additional economic data and insights from Jerome Powell.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5120.90 | Negative Crossover | Bearish
  • MA 20: 5104.23 | Negative Crossover | Bearish
  • MA 50: 5059.70 | Positive Crossover | Bullish

Simple:

  • MA 5: 5124.32 | Negative Crossover | Bearish
  • MA 20: 5104.27| Negative Crossover | Bearish
  • MA 50: 5059.71 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.78| Bullish Zone| Positive

Stochastic Oscillator: 23.66| Negative Zone | Neutral

Resistance And Support Levels:

  • R1: 5140.06 | R2: 5216.39
  • S1: 5048.89| S2: 4959.84

Overall Sentiment: Bullish| Market Direction: Buy

Trade Suggestion:  Limit Buy: 5068.24 | Take Profit: 5141.17| Stop Loss: 5025.43.

FTSE 100:

On Thursday, the FTSE experienced a decline as traders analyzed Chancellor Jeremy Hunt’s spring budget and anticipated the European Central Bank’s upcoming policy decision.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7667.80 | Negative Crossover | Bearish
  • MA 20: 7669.02 | Negative Crossover | Bearish
  • MA 50: 7665.94 | Positive Crossover | Bullish

Simple:

  • MA 5: 7661.02 | Negative Crossover | Bearish
  • MA 20: 7664.34| Negative Crossover | Bearish
  • MA 50: 7674.03| Positive Crossover | Bullish

RSI (Relative Strength Index): 47.63| Buying Zone| Buy

Stochastic Oscillator: 64.05| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 7669.1 | R2: 7756
  • S1: 7604.1| S2: 7500.0

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: Limit Sell: 7664.1 | Take Profit: 7606.6| Stop Loss: 7704.8.

DAX 40:

Today, the focus is on the DAX Index, with attention directed toward German Factory Orders and the ECB Press Conference.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17717.23 | Negative Crossover | Bearish
  • MA 20: 17675.01 | Positive Crossover | Bullish
  • MA 50: 17489.79| Positive Crossover | Bullish

Simple:

  • MA 5: 17721.07| Negative Crossover | Bearish
  • MA 20: 17718.65| Positive Crossover | Bullish
  • MA 50: 17434.02| Positive Crossover | Bullish

RSI (Relative Strength Index): 56.34| Buy Zone| Bullish

Stochastic Oscillator: 3.25|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 17831.5 | R2: 18136.7
  • S1: 17635.2| S2: 17395.4

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 17446.2 | Take Profit: 17831.5| Stop Loss: 17213.7.

Elsewhere in the Indices Market:

Asian stocks show a varied performance following the worst day in weeks for Wall Street.

The Shanghai composite is up at 0.28%. Overall, the Singapore MSCI up 0.23% to 287.00. Over in Hong Kong, the Hang Seng Index is down 1.27% to 16,229.78. In Japan, the Nikkei 225 was down 1.23% to 39,598.71, while the Topix index was down 0.44% to 2718.54. South Korea’s Kospi up 0.23% to 2,647.62. Australia S&P/ASX 200 is up 0.39% to, 7,763.70.

Europe’s main stock markets steadied at the start of trading on Wednesday influenced by the varied performance of major indices in Asia.

The DAX futures contract in Germany traded 0.01 higher, CAC 40 futures in France up 0.12% to 7,964.36, and the UK 100 futures contract in the U.K. down 0.25% to 7,660.00%.

U.S. stocks conclude on an upbeat note, and Treasury yields experience a decline as Powell provides assurances about potential rate cuts.

Wall Street mirrored the positive trend in global shares, closing higher on Wednesday. The key U.S. Treasury yield also dipped to a one-month low, prompted by Federal Reserve Chair Jerome Powell’s reassurances. Powell indicated that despite ongoing inflation challenges, rate cuts are likely to be implemented later this year.

Indexes: Dow up 0.20%, S&P 500- up 0.51%, Nasdaq up 0.58%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.52% at 597.69, Tesla, Inc. (TSLA) is down 2.32% at 176.54, and Apple Inc. (AAPL) is down 0.59% at 169.12. Goldman Sachs Group Inc (GS) is down 0.34% at 389.57, and Morgan Stanley (MS) is down 3.89% at 85.66.

Key Economic Events & Data Release Today:

(EUR) ECB Interest Rate Decision (Mar) Forecast 4.50%, Previous 4.50% at 08:15.

(ECB) ECB Monetary Policy Statement at 08:15.

(USD) Initial Jobless Claims Forecast 217K, Previous 215K at 08:30.

(EUR) ECB Press Conference at 08:45.

(ECB) ECB President Lagarde Speaks at 10:00.