. Daily Index Analysis - Nasdaq, DAX decline, predict Wall Street losses.

Daily Index Analysis – Nasdaq, DAX decline, predict Wall Street losses.

Daily Index Analysis – Nasdaq, DAX decline, predict Wall Street losses.

03 Jan 2024

Introduction:

In the indices market, Asian markets dip following a pause in the Wall Street rally. The decline is evident across major indices, with European shares also seeing a downturn as investors await policy cues. Additionally, U.S. futures indicate possible fresh losses on Wall Street as yields rise, aligning with ongoing concerns about the Federal Reserve’s monetary policy. Explore the latest updates in global indices movements and policy outlooks.

Market In Focus for today – Nasdaq 100

On Wednesday, global stock markets continued their decline into the New Year. The Nasdaq, particularly focused on technology stocks, experienced a 1.6% slide on Tuesday. This was primarily influenced by a nearly 3% decrease in Apple’s shares, which hit a seven-week low following a downgrade by Barclays.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16775.59 | Negative Crossover | Bearish
  • MA 20: 16996.82 | Negative Crossover | Bearish
  • MA 50: 16775.85 | Negative Crossover | Bearish

Simple:

  • MA 5: 16793.35 | Negative Crossover | Bearish
  • MA 20: 16996.27| Negative Crossover | Bearish
  • MA 50: 16775.88 | Negative Crossover | Bearish

RSI (Relative Strength Index): 32.78| Sell Zone| Bearish

Stochastic Oscillator: 0.00|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 17038.81 | R2: 17403.80
  • S1: 16642.53| S2: 16027.25

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 16527.81 | Take Profit: 16027.25| Stop Loss: 1690324.

DAX 40:

On Wednesday, European shares experienced a decline as the momentum from last year’s rally began to wane. Investors closely monitored key factors throughout the day for indications regarding global monetary policy.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16884.04 | Negative Crossover | Bearish
  • MA 20: 16898.65 | Negative Crossover | Bearish
  • MA 50: 16881.82 | Negative Crossover | Bearish

Simple:

  • MA 5: 16887.08 | Negative Crossover | Bearish
  • MA 20: 16898.65| Negative Crossover | Bearish
  • MA 50: 16881.32| Negative Crossover | Bearish

RSI (Relative Strength Index): 49.05| Buy Zone| Bullish

Stochastic Oscillator: 21.29|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 16989.4 | R2: 17207.7
  • S1: 16849.6| S2: 16456.6

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell: 16771.0 | Take Profit: 16474.0| Stop Loss: 16989.4.

Elsewhere in the Indices Market:

The Asian markets declined after the Wall Street rally paused.

The Shanghai composite is down at 0.43%. Overall, the Singapore MSCI is down 1.82% to 280.50. Over in Hong Kong, the Hang Seng Index down 0.85% to 16,646.41. In Japan, the Nikkei 225 was down 0.22% to 33,464.17, while the Topix index was up 0.19% to 2,366.39. South Korea’s Kospi down 2.34% to 2,607.31. Australia S&P/ASX 200 is down 1.37% to, 7,523.20.

European shares decline investors await cues on the policy outlook.

The DAX futures contract in Germany traded 0.87 lower, CAC 40 futures in France down 1.31% to 7,432.50, and the UK 100 futures contract in the U.K. down 0.85% to 7,655.70.

U.S. Futures indicate fresh declines on Wall Street as yields increase.

On Wednesday, futures for U.S. stock indices declined, signaling potential new losses on the second trading day of 2024. This came as Treasury yields continued to rise in anticipation of data that could provide insights into the Federal Reserve’s plans for monetary policy easing.

Indexes: Dow down 0.17%, S&P 500- down 0.18%, Nasdaq down 0.30%.

Corporate News:

Netflix, Inc. (NFLX) is down 3.78% at 468.50, Tesla, Inc. (TSLA) is down 0.024% at 248.42, and Apple Inc. (AAPL) is down 3.58% at 185.64. Goldman Sachs Group Inc (GS) up 0.66% at 388.30, Morgan Stanley (MS) up 0.70% at 93.90.

Key Economic Events & Data Release Today:

(EUR) German Unemployment Change (Dec) Forecast 20K, Previous 22K at 14:25.

(USD) ISM Manufacturing PMI (Dec) Forecast 47.1, Previous 46.7 at 20:30.

(USD) JOLTs Job Openings (Nov) Forecast 8.850M, Previous 8.733M at 20:30.