. Daily Index Analysis - Markets tumble as Fed remarks loom.

Daily Index Analysis – Markets tumble as Fed remarks loom.

Daily Index Analysis – Markets tumble as Fed remarks loom.

05 Apr 2024

Introduction:

Asian stock markets encounter downward pressure as investors await US jobs data. The Shanghai composite dips by 0.18%, while the Nikkei 225 in Japan sees a 1.96% decline. Meanwhile, European stocks hit a two-week low due to hawkish Fed comments, with the DAX futures in Germany dropping by 1.44%. Additionally, Wall Street undergoes a sell-off as investors digest Fed remarks ahead of the monthly jobs report.

Market In Focus for today – Dow Jones

On Thursday, the Dow Jones Industrial Average experienced a substantial decline of around 530 points, representing its most significant drop since March 2023.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39343.04 | Negative Crossover | Bearish
  • MA 20: 39550.08 | Negative Crossover | Bearish
  • MA 50: 39582.78 | Negative Crossover | Bearish

Simple:

  • MA 5: 39358.15 | Negative Crossover | Bearish
  • MA 20: 39720.47| Negative Crossover | Bearish
  • MA 50: 39728.09 | Negative Crossover | Bearish

RSI (Relative Strength Index): 30.79| Selling Zone| Sell

Stochastic Oscillator: 3| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 39343.85 | R2: 39746.41
  • S1: 38883.78| S2: 38331.69

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Limit Sell: 39275.99 | Take Profit: 38929.13| Stop Loss: 39567.67.

S&P 500:

The S&P 500 witnessed decreases of 1.4%. This decline occurred after crude oil prices surged and Minneapolis Federal Reserve President made remarks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5245.55 | Negative Crossover | Bearish
  • MA 20: 5261.71 | Negative Crossover | Bearish
  • MA 50: 5249.51 | Negative Crossover | Bearish

Simple:

  • MA 5: 5244.89 | Negative Crossover | Bearish
  • MA 20: 5276.32| Negative Crossover | Bearish
  • MA 50: 5267.00 | Negative Crossover | Bearish

RSI (Relative Strength Index): 35.78| Sell Zone| Negative

Stochastic Oscillator: 3.53| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5244.86 | R2: 5334.81
  • S1: 5148.77| S2: 5044.51

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Limit Sell: 5242.82 | Take Profit: 5150.82| Stop Loss: 5302.10.

FTSE 100:

The FTSE 100 attempted a retest of the 8,000 level but faced rejection thereafter.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7933.40 | Negative Crossover | Bearish
  • MA 20: 7929.32 | Negative Crossover | Bearish
  • MA 50: 7870.61 | Positive Crossover | Bullish

Simple:

  • MA 5: 7939.23 | Negative Crossover | Bearish
  • MA 20: 7948.18| Negative Crossover | Bearish
  • MA 50: 7861.00 | Positive Crossover | Bullish

RSI (Relative Strength Index): 50.8| Bullish Zone| Positive

Stochastic Oscillator: 9.23| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 7922.9 | R2: 8004.6
  • S1: 7803.0| S2: 7705.0

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Stop Sell: 7906.1 | Take Profit: 7813.5| Stop Loss: 7976.9.

DAX 40:

The DAX 40 reversed its upward trend on Tuesday and has since declined, reaching Friday’s intraday low at 18,119, as investors await crucial US employment data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18338.36 | Negative Crossover | Bearish
  • MA 20: 18354.85 | Negative Crossover | Bearish
  • MA 50: 18209.74 | Positive Crossover | Bullish

Simple:

  • MA 5: 18352.19 | Negative Crossover | Bearish
  • MA 20: 18432.87 | Negative Crossover | Bearish
  • MA 50: 18221.28 | Negative Crossover | Bearish

RSI (Relative Strength Index): 41.33| Neutral Zone| Neutral

Stochastic Oscillator: 0| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 18328.4 | R2: 18646.9
  • S1: 17926.5| S2: 17539.8

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Limit Sell: 18305.7 | Take Profit: 18017.5| Stop Loss: 18480.1.

Elsewhere in the Indices Market:

Asian stocks face downward pressure ahead of US jobs data.

The Shanghai composite is down at 0.18%. Overall, the Singapore MSCI up 0.38% to 292.62. Over in Hong Kong, the Hang Seng Index is down 01% to 16,723.92. In Japan, the Nikkei 225 was down 1.96% to 38,992.08, while the Topix index was down 1.08% to 2702.62. South Korea’s Kospi down 1.01% to 2,714.21. Australia S&P/ASX 200 is down 0.56% to, 7,773.30.

European stocks declined to a two-week low on hawkish Fed comments.

The DAX futures contract in Germany traded 1.44 lower, CAC 40 futures in France down 1.48% to 8,030.69, and the UK 100 futures contract in the U.K. down 1.05% to 7,892.51.

Wall Street experiences a sell-off ahead of the jobs report, investors digest Fed comments.

The three primary U.S. stock indices each declined by over 1%, with the S&P 500 witnessing its largest daily percentage decrease since February 13 on Thursday. Federal Reserve officials adopted a cautious stance regarding the prospects of interest rate cuts, prompting investors to prepare for Friday’s U.S. monthly jobs report.

Indexes: Dow down 1.4%, S&P 500- down 1.2%, Nasdaq down 1.4%.

Corporate News:

Netflix, Inc. (NFLX) is down 2.05% at 617.14, Tesla, Inc. (TSLA) is up 1.62% at 171.11, and Apple Inc. (AAPL) is down 0.49% at 168.82. Goldman Sachs Group Inc (GS) is down 1.87% at 406.25, and Morgan Stanley (MS) is down 0.77% at 92.28.

Key Economic Events & Data Release Today:

(EUR) Retail Sales (MoM) (Feb) Forecast –0.3%, Previous 0.1% at 14:30.

(CAD) Employment Change (Mar) Forecast 25.9K, Previous 40.7K at 18:00.

(USD) Unemployment Rate (Mar) Forecast 3.9%, Previous 3.9% at 18:00.

(USD) Nonfarm Payrolls (Mar) Forecast 212K, Previous 275K at 18:00.

(CAD) Ivey PMI (Mar) Forecast 54.5, Previous 53.9 at 19:30.