. Daily Index Analysis - Markets Rise on French Election and Economic Data

Daily Index Analysis – Markets Rise on French Election and Economic Data

Daily Index Analysis – Markets Rise on French Election and Economic Data

01 Jul 2024

Introduction:

Asian stocks achieve modest gains amid mixed economic data from Japan and China, while European stocks rise after the first round of the French elections. Stock futures climb as Wall Street prepares for the second half of the year in a holiday-shortened trading week.

Market In Focus for today – Dow Jones

Dow Jones Futures Soar as Second Half of 2024 Begins.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39518.15 | Positive Crossover | Bullish
  • MA 20: 39493.00 | Positive Crossover | Bearish
  • MA 50: 39338.01 | Positive Crossover | Bullish

Simple:

  • MA 5: 39504.69 | Positive Crossover | Bearish
  • MA 20: 39564.29| Negative Crossover | Bearish
  • MA 50: 39250.00 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.65| Buy Zone| Bullish


Stochastic Oscillator: 35.62| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 39649.40 | R2: 40153.58
  • S1: 39246.05| S2: 38872.96


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 39407.39 | Take Profit: 39911.57| Stop Loss: 39104.88.

S&P 500:

S&P 500 Futures Rally as Second Half of 2024 Begins.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5536.87 | Negative Crossover | Bearish
  • MA 20: 5533.19 | Positive Crossover | Bullish
  • MA 50: 5492.45 | Positive Crossover | Bullish

Simple:

  • MA 5: 5539.18 | Negative Crossover | Bearish
  • MA 20: 5534.43| Positive Crossover | Bullish
  • MA 50: 5497.52 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.00|Buy Zone | Positive


Stochastic Oscillator: 1.55| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5584.56 | R2: 5685.13
  • S1: 5481.47| S2: 5385.93


Overall Sentiment: Bullish| Market Direction: Buy


Trade Suggestion: Buy Limit : 5471.41 | Take Profit: 5584.58| Stop Loss: 5401.62.

FTSE 100:

On Monday, the FTSE 100 advanced, propelled by French stocks amid expectations of a hung parliament following the initial round of parliamentary elections.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8205.67 | Negative Crossover | Bearish
  • MA 20: 8216.22 | Negative Crossover | Bearish
  • MA 50: 8228.30 | Negative Crossover | Bearish

Simple:

  • MA 5: 8202.12 | Negative Crossover | Bearish
  • MA 20: 8233.97| Negative Crossover | Bearish
  • MA 50: 8216.26 | Negative Crossover | Bearish

RSI (Relative Strength Index): 45.41| Buy Zone| Bullish


Stochastic Oscillator: 9.33| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 8260.2 | R2: 8374.3
  • S1: 8148.7| S2: 8029.7


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion: Sell Limit : 8314.2 | Take Profit: 8451.7| Stop Loss: 8217.5.

Euro Stoxx 50:

European stocks saw gains on Monday, driven by French shares, as the far-right National Rally (RN) party made significant gains in the first round of parliamentary elections, albeit by a smaller margin than anticipated by some polls.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4912.81 | Negative Crossover | Bearish
  • MA 20: 4922.20 | Positive Crossover | Bullish
  • MA 50: 4941.10 | Positive Crossover | Bullish

Simple:

  • MA 5: 4920.12 | Negative Crossover | Bearish
  • MA 20: 4920.99| Positive Crossover | Bullish
  • MA 50: 4940.15 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.44| Buy Zone| Bullish


Stochastic Oscillator: 70.98| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4969 | R2: 5038
  • S1: 4906| S2: 4832


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion: Sell Limit : 4896 | Take Profit: 4752| Stop Loss: 4961.


Elsewhere in the Indices Market:

Asian stocks see modest gains amid mixed economic data from Japan and China.

The Shanghai composite is up at 0.92%. Overall, the Singapore MSCI down 0.50% to 314.77. Over in Hong Kong, the Hang Seng Index up 0.01% to 17,718.61. In Japan, the Nikkei 225 up 0.12% to 39,631.06, while the Topix index was up 0.52% to 2824.28. South Korea’s Kospi up 0.23% to 2,804.31. Australia S&P/ASX 200 down 0.22% to, 7,750.70.

European stocks rise following the first round of the French elections.

The DAX futures contract in Germany traded up 0.38, CAC 40 futures in France up 1.51% to 7,592.20 and the UK 100 futures contract in the U.K. up 0.35% to 8,192.37.

Stock futures climb as Wall Street prepares for the second half of the year.

Monday begins a holiday-shortened trading week, with markets closed on Thursday for the Fourth of July. Investors will gain key insights into the labor market on Friday with the release of the June jobs report.

Indexes: Dow up 0.2%, S&P 500- up 0.2%, Nasdaq up 0.1%.

Corporate News:

Netflix, Inc. (NFLX) down 1.38% at 674.88, Tesla, Inc (TSLA) up 0.23% at 197.88, Apple Inc. (AAPL) down 1.63% at 210.62. Goldman Sachs Group Inc (GS) up 1.43% at 452.32, Morgan Stanley (MS) up 1.48% at 97.19.



Key Economic Events & Data Release Today:

(EUR) German Manufacturing PMI (Jun) Forecast 43.4, Previous 45.4 at 03:55.

(GBP) Manufacturing PMI (Jun) Forecast 51.4, Previous 51.2 at 14:00.

(EUR) German CPI (MoM) (Jun) Forecast 0.2%, Previous 0.1% at 08:00.

(USD) ISM Manufacturing PMI (Jun) Forecast 49.2, Previous 48.7 at 10:00.

(EUR) ECB President Lagarde Speaks at 15:00.

(AUD) Retail Sales (MoM) (May) Previous 0.1% at 21:30.

(AUD) RBA Meeting Minutes at 21:30.