. Daily Index Analysis - Global markets tumble, U.S. inflation soars.

Daily Index Analysis – Global markets tumble, U.S. inflation soars.

Daily Index Analysis – Global markets tumble, U.S. inflation soars.

14 Feb 2024

Introduction:

“In the global indices market, the aftermath of soaring U.S. inflation data is felt across most Asian markets, with declines witnessed in key indices. Meanwhile, the Shanghai composite bucks the trend with a 1.28% gain. In Europe, stock markets witness an upswing as the UK’s inflation rate retreats. Conversely, U.S. stocks face a decline on Tuesday as worse-than-expected inflation data dispels hopes for a May interest rate cut, shaping a complex landscape in international financial markets.”

Market In Focus for today – Dow Jones

Dow plunges 500 points, marking its most significant decline since March 2023, following a robust inflation report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38555.70 | Negative Crossover | Bearish
  • MA 20: 38650.67 | Negative Crossover | Bearish
  • MA 50: 38480.25 | Negative Crossover | Bearish

Simple:

  • MA 5: 38268.85 | Negative Crossover | Bearish
  • MA 20: 38650.67| Negative Crossover | Bearish
  • MA 50: 38480.55 | Negative Crossover | Bearish

RSI (Relative Strength Index): 42.8| Neutral Zone| Neutral

Stochastic Oscillator: 5.23| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 38859.88 | R2: 39412.06
  • S1: 38231.22| S2: 37387.75

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Limit Sell: 38445.91 | Take Profit: 37817.15| Stop Loss: 38859.98.

S&P 500:

U.S. stocks decline as inflation data dashes hopes for a rate cut. The S&P 500 registers a drop of 66.94 points, or 1.33%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5000.22 | Negative Crossover | Bearish
  • MA 20: 5007.20 | Negative Crossover | Bearish
  • MA 50: 4959.99 | Positive Crossover | Bullish

Simple:

  • MA 5: 5014.37 | Negative Crossover | Bearish
  • MA 20: 5007.20| Negative Crossover | Bearish
  • MA 50: 4959.99| Positive Crossover | Bullish

RSI (Relative Strength Index): 49.04| Bullish Zone| Positive

Stochastic Oscillator: 6.39| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5064.20 | R2: 5160.51
  • S1: 4955.18| S2: 4862.51

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4995.15 | Take Profit: 5064.20| Stop Loss: 4955.18.

FTSE 100:

Wednesday morning saw an upward push in the FTSE and European stocks as the UK inflation rate surprisingly held steady at 4% in January.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7567.22 | Positive Crossover | Bullish
  • MA 20: 7613.88 | Negative Crossover | Bearish
  • MA 50: 7617.50 | Negative Crossover | Bearish

Simple:

  • MA 5: 7569.09 | Positive Crossover | Bullish
  • MA 20: 7613.88| Negative Crossover | Bearish
  • MA 50: 7617.50| Negative Crossover | Bearish

RSI (Relative Strength Index): 44.53| Neutral Zone| Neutral

Stochastic Oscillator: 30.54| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 7633.3 | R2: 7714.6
  • S1: 7575.8| S2: 7495.8

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Limit Sell: 7607.8 | Take Profit: 7513.0| Stop Loss: 7678.4.

Dax 40:

Before the market opened on Wednesday, DAX futures were in the red as investors evaluated the U.S. CPI Report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16976.28 | Negative Crossover | Bearish
  • MA 20: 17024.06 | Negative Crossover | Bearish
  • MA 50: 17001.01 | Negative Crossover | Bearish

Simple:

  • MA 5: 16991.04| Negative Crossover | Bearish
  • MA 20: 17024.06| Negative Crossover | Bearish
  • MA 50: 17001.01| Negative Crossover | Bearish

RSI (Relative Strength Index): 44.98| Neutral Zone| Neutral

Stochastic Oscillator: 15.22|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 16974.4 | R2: 17150.6
  • S1: 16811.4| S2: 16639.7

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Limit Sell: 17000.8 | Take Profit: 16811.4| Stop Loss: 17128.5.

Elsewhere in the Indices Market:

Following unexpectedly high U.S. inflation data, most Asian markets experience a decline.

The Shanghai composite is up at 1.28%. Overall, the Singapore MSCI is down 0.04% to 278.43. Over in Hong Kong, the Hang Seng Index down 0.84% to 15,879.38. In Japan, the Nikkei 225 was down 0.69% to 37,703.32, while the Topix index was down 1.05% to 2584.59. South Korea’s Kospi down 1.10% to 2,620.42. Australia S&P/ASX 200 is down 0.74% to, 7,547.70.

European stock markets show an increase as the inflation rate in the UK experiences a decline.

The DAX futures contract in Germany traded 0.21 higher, CAC 40 futures in France up 0.40% to 7,655.70 and the UK 100 futures contract in the U.K. up 0.86% to 7,576.63.

US stocks decline after inflation data dampens rate cut hopes.

On Tuesday, U.S. stocks plunged as worse-than-anticipated inflation data dashed expectations of a May interest rate cut.

Indexes: Dow down 0.25%, S&P 500- down 1.07%, Nasdaq down 2.16%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.60% at 554.52, Tesla, Inc. (TSLA) is down 2.18% at 184.02, and Apple Inc. (AAPL) is down 1.13% at 185.04. Goldman Sachs Group Inc (GS) is down 3.54% at 378.75, and Morgan Stanley (MS) is down 3.34% at 83.97.

Key Economic Events & Data Release Today:

(GBP) CPI (YoY) (Jan) Actual 4.0%, Forecast 4.1%, Previous 4.0% at 12:30.

(EUR) GDP (QoQ) Forecast 0.0%, Previous –0.1% at 15:30.

(EUR) Industrial Production (MoM) (Dec) Forecast –0.2%, Previous –0.3% at 15:30.

(EUR) GDP (YoY) (Q4) Forecast 0.1%, Previous 0.0% at 15:30.

(GBP) BoE Gov Bailey Speaks at 20:30.

(USD) Crude Oil Inventories Forecast 3.300M, Previous 5.521M at 21:00.