. Daily Index Analysis - Global Stocks Slide on Weak US Manufacturing

Daily Index Analysis – Global Stocks Slide on Weak US Manufacturing

Daily Index Analysis – Global Stocks Slide on Weak US Manufacturing

04 Jun 2024


Introduction:

In the indices market, Asian stocks declined following news of U.S. manufacturing contraction in May. Notable movements include Shanghai’s rise by 0.41% and Singapore’s fall by 0.74%. European stocks retreated with caution ahead of the ECB meeting. Meanwhile, U.S. stock futures continued their decline, signalling a slow start to June trading on Wall Street.

Market In Focus for today – Dow Jones

The Dow Jones Industrial Average started June’s trading with a drop as weak U.S. manufacturing data sparked concerns about the economy’s strength.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38638.04 | Negative Crossover | Bearish
  • MA 20: 38748.22 | Negative Crossover | Bearish
  • MA 50: 39014.06 | Negative Crossover | Bearish

Simple:

  • MA 5: 38585.59 | Negative Crossover | Bearish
  • MA 20: 38677.75| Negative Crossover | Bearish
  • MA 50: 39326.04 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.87| Negative Zone| Negative


Stochastic Oscillator: 73.09| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 38780.62 | R2: 39323.23
  • S1: 38238.08| S2: 37748.06


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Sell Limit: 38918.93 | Take Profit: 38323.13| Stop Loss: 39323.23.

S&P 500:

S&P 500 futures decline amid growth concerns.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5290.26 | Positive Crossover | Bullish
  • MA 20: 5293.44 | Negative Crossover | Bearish
  • MA 50: 5286.80 | Negative Crossover | Bearish

Simple:

  • MA 5: 5284.43 | Positive Crossover | Bullish
  • MA 20: 5292.95| Negative Crossover | Bearish
  • MA 50: 5311.64 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.15|Neutral Zone| Neutral


Stochastic Oscillator: 74.19 | Buy Zone | Negative

Resistance And Support Levels:

  • R1: 5307.87 | R2: 5368.63
  • S1: 5241.42| S2: 5174.97


Overall Sentiment: Neutral| Market Direction: Sell


Trade Suggestion:  Sell Limit : 5321.86 | Take Profit: 5241.42| Stop Loss: 5365.57.

FTSE 100:

The FTSE 100 and European stocks declined on Tuesday as markets awaited several central bank decisions in the West.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8271.96 | Negative Crossover | Bearish
  • MA 20: 8282.43 | Negative Crossover | Bearish
  • MA 50: 8295.77 | Negative Crossover | Bearish

Simple:

  • MA 5: 8273.33 | Negative Crossover | Bearish
  • MA 20: 8263.52| Negative Crossover | Bearish
  • MA 50: 8354.68 | Negative Crossover | Bearish

RSI (Relative Strength Index): 43.94| Neutral Zone| Neutral


Stochastic Oscillator: 62.12| Buying Zone | Negative

Resistance And Support Levels:

  • R1: 8365.2 | R2: 8440.6
  • S1: 8214.7| S2: 8110.3


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 8343.1 | Take Profit: 8214.2| Stop Loss: 8435.0.

DAX 40:

German stocks hit a 4-week low.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18567.14 | Negative Crossover | Bearish
  • MA 20: 18588.02 | Negative Crossover | Bearish
  • MA 50: 18584.99 | Negative Crossover | Bearish

Simple:

  • MA 5: 18554.2 | Negative Crossover | Bearish
  • MA 20: 18596.5| Negative Crossover | Bearish
  • MA 50: 18680.7 | Negative Crossover | Bearish

RSI (Relative Strength Index): 42.85| Neutral Zone| Neutral


Stochastic Oscillator: 57.1| Positive Zone | Negative

Resistance And Support Levels:

  • R1: 18625.8 | R2: 18927.6
  • S1: 18298.3| S2: 18013.8


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 18600.0 | Take Profit: 18255.1| Stop Loss: 18858.6.


Elsewhere in the Indices Market:


Asian markets mostly fell on Tuesday after a report revealed that U.S. manufacturing contracted in May.

The Shanghai composite is up at 0.41%. Overall, the Singapore MSCI down 0.74% to 309.43. Over in Hong Kong, the Hang Seng Index up 0.22% to 18,444.11. In Japan, the Nikkei 225 down 0.22% to 38,837.46, while the Topix index was down 0.38% to 2787.48. South Korea’s Kospi down 0.76% to 2,662.10. Australia S&P/ASX 200 down 0.31% to, 7,737.00.

European stocks pull back amid caution ahead of the ECB meeting.

The DAX futures contract in Germany traded 0.79 lower, CAC 40 futures in France down 0.49% to 7,958.89 and the UK 100 futures contract in the U.K. down 0.36% to 8,232.93.

U.S. Stock futures decline as the sluggish start to June trading persists.

Stock futures fell on Tuesday as Wall Street sought to stabilize after an uneven start to the month.

Indexes: Dow down 0.3%, S&P 500- down 0.3%, Nasdaq down 0.3%.


Corporate News:

Netflix, Inc. (NFLX) down 1.22% at 633.79, Tesla, Inc (TSLA) down 1.01% at 176.29, Apple Inc. (AAPL) up 0.93% at 194.03. Goldman Sachs Group Inc (GS) down 0.34% at 454.98, Morgan Stanley (MS) down 0.44% at 97.41.



Key Economic Events & Data Release Today:

(AUD) Retail Sales (MoM) Forecast 0.1%, Previous –0.4% at 07:00.

(EUR) German Unemployment Change (May) Forecast 7K, Previous 10K at 13:25.

(USD) JOLTs Job Openings (Apr) Forecast 8.370M, Previous 8.488M at 19:30.