Daily Index Analysis – Nasdaq 100 Red as Inflation Concerns Turn Real
22 Sep 2023
In the global indices market, uncertainty looms as Asian markets react to the Federal Reserve’s hawkish stance on interest rates. Mixed sentiments prevail, with the Shanghai composite gaining 1.55%, the Hang Seng Index surging by 2.28%, and Japan’s Nikkei 225 dipping by 0.52%. In Europe, markets decline amid concerns about central banks and interest rates, with DAX and CAC 40 futures down. Meanwhile, US stocks suffered their lowest levels since June, while Treasury rates climbed, reflecting unease over the Fed’s policy direction.
Market In Focus for today – Nasdaq 100
The day after Fed Chairman Jerome Powell warned that inflation still had a long way to go before achieving the central bank’s 2% target, the Nasdaq 100 fell more than 1%.
- MA 5: 14973.08 | Negative Crossover | Bearish
- MA 20: 15206.79 | Negative Crossover | Bearish
- MA 50: 15291.54 | Negative Crossover | Bearish
- MA 5: 14945.94 | Negative Crossover | Bearish
- MA 20: 15299.96| Negative Crossover | Bearish
- MA 50: 15371.26 | Negative Crossover | Bearish
RSI (Relative Strength Index): 32.72 | Sell Zone | Bearish
Stochastic Oscillator: 12.39 | Sell Zone | Positive
Resistance And Support Levels:
- R1: 15187.20 | R2: 15709.69
- S1: 14813.99 | S2: 14270.17
Overall Sentiment: Bearish | Market Direction: Sell
Trade Suggestion: Stop Sell: 14632.72 | Take Profit: 14270.17 | Stop Loss: 14920.62.
Elsewhere in the Indices Market
Due to market uncertainty over the Fed’s hawkish tone on the trajectory of interest rates, Asian markets show a mixed sentiment.
The Shanghai composite is up at 1.55%. Overall, the Singapore MSCI is down 0.00% to 279.50. Over in Hong Kong, the Hang Seng Index is up by 2.28% to 18,057.45. In Japan, the Nikkei 225 was down 0.52% to 32,402.41, while the Topix index was down 0.30% to 2,376.27. South Korea’s Kospi down 0.27% to 2,508.13. Australia S&P/ASX 200 is up 0.05% to, 7,068.80.
European markets decline as hawkish central banks cause concern about interest rates.
The DAX futures contract in Germany traded 0.31% lower, CAC 40 futures in France down 0.65% to 7,167.25 and the UK 100 futures contract in the U.K. up 0.41% to 7,710.08.
US stocks closed at their lowest level since June, while Treasury rates rose on hawkish Fed policy.
On Thursday, Wall Street plunged in a widespread sell-off as investor risk appetite was dampened by concerns that the Federal Reserve’s tight monetary policy will last longer than expected.
Indexes down: Dow 1.08%, S&P 500- 1.64%, Nasdaq up 1.82%.
Netflix Inc. (NFLX) is down 0.56% at 384.15, Nike Inc. (NKE) is down 2.61% at 91.59, and Amazon.com, Inc. (AMZN) is down at 4.41% at 129.33. JPMorgan Chase & Co (JPM) is down 0.78% at 147.14, and Morgan Stanley (MS) is down 2.59% at 84.88.
Key Economic Events & Data Release Today:
(JPY) BoJ Monetary Policy Statement at 08:30.
(GBP) Retail Sales (MoM) (Aug) Actual 0.4%, Forecast 0.5%, Previous –1.2% at 11:30.
(CAD) Core Retail Sales (MoM) (Jul) Forecast 0.5%, Previous –0.8% at 18:00.
(GBP) BoE Interest Rate Decision (Sep) Forecast 5.50%, Previous 5.25% at 16:30.
(USD) Service PMI (Sep) Forecast 50.6, Previous 50.5 at 19:15.
(EUR) German Manufacturing PMI (Sep) Actual 39.8, Forecast 39.5, Previous 39.1 at 13:00.