. Daily Index Analysis - inflation, geopolitics, rate-cuts. Insights, trades for Dow, S&P, FTSE, DAX.

Daily Index Analysis – inflation, geopolitics, rate-cuts. Insights, trades for Dow, S&P, FTSE, DAX.

Daily Index Analysis – inflation, geopolitics, rate-cuts. Insights, trades for Dow, S&P, FTSE, DAX.

12 Jan 2024

Introduction:

In the broader indices market, In the Asian market, indices decline as China’s annual report is released, impacting various markets. Meanwhile, European shares see gains fueled by rate-cut optimism. On Wall Street, minimal changes are observed following the release of inflation and labor market data, dampening early expectations for Federal Reserve interest rate cuts. Key indices show mixed movements, with the Dow up 0.04%, the S&P 500 down 0.07%, and the Nasdaq remaining flat.

Market In Focus for today – Dow Jones

The Dow Jones Industrial Average experienced a decline of 225 points on Thursday, with Wall Street processing an inflation report from the Labour Department that surpassed expectations.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37879.74 | Negative Crossover | Bearish
  • MA 20: 37779.82 | Positive Crossover | Bullish
  • MA 50: 37819.10 | Positive Crossover | Bullish

Simple:

  • MA 5: 37899.05 | Negative Crossover | Bearish
  • MA 20: 37779.12| Positive Crossover | Bullish
  • MA 50: 37818.94 | Positive Crossover | Bullish

RSI (Relative Strength Index): 53.08| Buy Zone| Bullish

Stochastic Oscillator: 69.84|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 37878.39 | R2: 38103.25
  • S1: 37733.32| S2: 37508.46

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 37907.40 | Take Profit: 38103.25| Stop Loss: 37798.60.

S&P 500:

The S&P 500 concludes Thursday’s trading session with minimal changes, reacting to an inflation report that exceeded expectations.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4807.84 | Negative Crossover | Bearish
  • MA 20: 4773.75 | Positive Crossover | Bullish
  • MA 50: 4791.66 | Positive Crossover | Bullish

Simple:

  • MA 5: 4812.12 | Negative Crossover | Bearish
  • MA 20: 4773.72| Positive Crossover | Bullish
  • MA 50: 4791.64| Positive Crossover | Bullish

RSI (Relative Strength Index): 57.14| Buy Zone| Bullish

Stochastic Oscillator: 74.5|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 4845.73 | R2: 4890.34
  • S1: 4796.16| S2: 4736.68

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4802.97 | Take Profit: 4844.86| Stop Loss: 4776.41.

FTSE 100:

On Friday, European shares rose as investors brushed aside escalating conflict in the Middle East and celebrated the prospect of interest rate cuts from the European Central Bank (ECB).

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7642.83 | Negative Crossover | Bearish
  • MA 20: 7683.41 | Negative Crossover | Bearish
  • MA 50: 7693.13 | Negative Crossover | Bearish

Simple:

  • MA 5: 7642.74 | Negative Crossover | Bearish
  • MA 20: 7683.42| Negative Crossover | Bearish
  • MA 50: 7693.13| Negative Crossover | Bearish

RSI (Relative Strength Index): 42.93| Neutral Zone| Neutral

Stochastic Oscillator: 20.24|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 7672.7 | R2: 7763.9
  • S1: 7579.6| S2: 7497.7

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Limit Sell: 7663.4 | Take Profit: 7579.6| Stop Loss: 7726.7.

DAX 40:

On Friday, European stock markets exhibit upward momentum in response to favorable economic data from the U.K. and anticipation of crucial U.S. producer inflation reports. Germany’s Dax and other indices show gains, reflecting an overall optimistic sentiment in the early trading sessions.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16787.08 | Negative Crossover | Bearish
  • MA 20: 16770.25 | Positive Crossover | Bullish
  • MA 50: 16840.28 | Negative Crossover | Bearish

Simple:

  • MA 5: 16799.06 | Negative Crossover | Bearish
  • MA 20: 16770.01| Positive Crossover | Bullish
  • MA 50: 16840.22| Negative Crossover | Bearish

RSI (Relative Strength Index): 44.45| Neutral Zone| Neutral

Stochastic Oscillator: 35.74|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 16910.8 | R2: 17146.6
  • S1: 16666.2| S2: 16316.8

Overall Sentiment: Bearish | Market Direction: Buy

Trade Suggestion:  Stop Sell: 16613.8 | Take Profit: 16316.8| Stop Loss: 16840.9.

Elsewhere in the Indices Market:

Asian market fall as China annual report drops.

The Shanghai composite is up at 0.31%. Overall, the Singapore MSCI is down 0.67% to 279.65. Over in Hong Kong, the Hang Seng Index down 0.35% to 16,244.58. In Japan, the Nikkei 225 was up 1.50% to 35,577.11, while the Topix index was up 0.46% to 2,494.23. South Korea’s Kospi down 0.60% to 2,525.05. Australia S&P/ASX 200 is down 0.10% to, 7,498.30.

European shares gain on rate-cut cheer.

The DAX futures contract in Germany traded 0.83 higher, CAC 40 futures in France up 0.97% to 7,459.10 and the UK 100 futures contract in the U.K. up 0.70% to 7,629.97.

Wall Street remains relatively unchanged following the release of inflation and labor market data.

Closing with minimal changes, U.S. stocks on Thursday responded to hotter-than-anticipated inflation and positive labor market indicators, dimming expectations for early Federal Reserve interest rate cuts in the year. Despite these factors, a decline in Treasury yields limited the overall market decline.

Indexes: Dow up 0.04%, S&P 500- down 0.07%, Nasdaq flat.

Corporate News:

Netflix, Inc. (NFLX) is up 2.91% at 492.23, Tesla, Inc. (TSLA) is down 2.87% at 227.22, and Apple Inc. (AAPL) is down 0.32% at 185.59. Goldman Sachs Group Inc (GS) is down 0.58% at 379.75, and Morgan Stanley (MS) is down 1.06% at 90.51.

Key Economic Events & Data Release Today:

(GBP) Manufacturing Production (MoM) (Nov) Actual 0.4%, Forecast 0.3%, Previous –1.1% at 02:00.

(GDP) GDP (MoM) (Nov) Actual 0.2%, Forecast 0.2%, Previous 0.3% at 02:00.

(GBP) GDP (YoY (Nov) Actual 0.2%, Forecast 0.2%, Previous 0.3% at 02:00.

(GBP) Industrial Production (MoM) (Nov) Actual 0.3%, Forecast 0.3%, Previous –0.8% at 02:00.