. Daily Index Analysis - Navigate market shifts, China's impact.

Daily Index Analysis – Navigate market shifts, China’s impact.

Daily Index Analysis – Navigate market shifts, China’s impact.

20 Feb 2024

Introduction:

In the global indices landscape, Asian stocks encounter challenges despite China’s rate cut. Shanghai Composite saw a modest gain, while European markets showed mixed results following China’s unexpected rate adjustment. U.S. stock futures dipped after the long weekend, with attention on Nvidia’s earnings and the Federal Reserve’s minutes release, influencing discussions on inflation and interest rates.

Market In Focus for today – Dow Jones

Tuesday saw a decline in U.S. stock futures as investors anticipated a week that would include Nvidia’s corporate earnings and the minutes from the most recent monetary policy meeting. The Dow Jones Industrial Average fell 0.3%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38658.01 | Negative Crossover | Bearish
  • MA 20: 38631.75 | Negative Crossover | Bearish
  • MA 50: 38613.47 | Positive Crossover | Bullish

Simple:

  • MA 5: 38708.02 | Negative Crossover | Bearish
  • MA 20: 38631.82| Negative Crossover | Bearish
  • MA 50: 38613.05 | Positive Crossover | Bullish

RSI (Relative Strength Index): 48.98| Buy Zone| Buy

Stochastic Oscillator: 46.6| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 38925.81 | R2: 39302.43
  • S1: 38580.57| S2: 38109.80

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: Stop Sell: 38643.34 | Take Profit: 38277.18| Stop Loss: 38925.81.

S&P 500:

S&P 500 futures decline as investors focus on a trading week shortened by the holiday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5022.10 | Positive Crossover | Bullish
  • MA 20: 5020.80 | Positive Crossover | Bullish
  • MA 50: 4983.30 | Positive Crossover | Bullish

Simple:

  • MA 5: 5026.72 | Negative Crossover | Bearish
  • MA 20: 5020.82| Positive Crossover | Bullish
  • MA 50: 4983.31| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.17| Bullish Zone| Positive

Stochastic Oscillator: 44.09| Neutral Zone | Positive

Resistance And Support Levels:

  • R1: 5051.76 | R2: 5101.02
  • S1: 4970.10| S2: 4896.22

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Limit Sell: 5014.44 | Take Profit: 4931.92| Stop Loss: 5071.18.

FTSE 100:

FTSE 100 edges into positive territory.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7702.39 | Positive Crossover | Bullish
  • MA 20: 7633.69 | Positive Crossover | Bullish
  • MA 50: 7647.42 | Positive Crossover | Bullish

Simple:

  • MA 5: 7699.87 | Positive Crossover | Bullish
  • MA 20: 7633.83| Positive Crossover | Bullish
  • MA 50: 7647.48| Positive Crossover | Bullish

RSI (Relative Strength Index): 67.01| Buy Zone| Bullish

Stochastic Oscillator: 95.96| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7779.2 | R2: 7852.8
  • S1: 7687.7| S2: 7597.9

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 7700.2 | Take Profit: 7788.2| Stop Loss: 7650.0.

Euro Stoxx 50:

European primary stock markets exhibited a varied performance at the beginning of Tuesday’s trading session.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4764.19 | Positive Crossover | Bullish
  • MA 20: 4748.21 | Positive Crossover | Bullish
  • MA 50: 4711.09| Positive Crossover | Bullish

Simple:

  • MA 5: 4769.09| Positive Crossover | Bullish
  • MA 20: 4748.02| Positive Crossover | Bullish
  • MA 50: 4711.87| Positive Crossover | Bullish

RSI (Relative Strength Index): 62.18| Buy Zone| Bullish

Stochastic Oscillator: 68.73|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4783 | R2: 4840
  • S1: 4728| S2: 4655

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4713 | Take Profit: 4783| Stop Loss: 4671.

Elsewhere in the Indices Market:

Asian stocks face challenges despite China’s decision to cut interest rates.

The Shanghai composite is up at 0.42%. Overall, the Singapore MSCI up 0.48% to 290.30. Over in Hong Kong, the Hang Seng Index up 0.57% to 16,247.51. In Japan, the Nikkei 225 was down 0.28% to 38,363.61, while the Topix index was down 0.28% to 2632.30. South Korea’s Kospi down 0.84% to 2,657.79. Australia S&P/ASX 200 is down 0.080% to, 7,659.00.

On Tuesday, European stock markets exhibited a varied performance as investors processed a larger-than-anticipated reduction in China’s benchmark.

The DAX futures contract in Germany traded 0.21 lower, CAC 40 futures in France up 0.31% to 7,792.73, and the UK 100 futures contract in the U.K. down 0.08% to 7,722.37%.

U.S. stock futures decline as investors come back from an extended weekend.

On Tuesday, U.S. stock futures declined as investors anticipated a week featuring corporate earnings from Nvidia and the release of minutes from the recent Federal Reserve monetary policy meeting. This event could shape the discussion on inflation and interest rates.

Indexes: Dow down 0.3%, S&P 500- up 0.3%, Nasdaq down 0.4%.

Corporate News:

Netflix, Inc. (NFLX) is down 1.60% at 583.95, Tesla, Inc. (TSLA) is down 0.25% at 199.95, and Apple Inc. (AAPL) is down 0.84% at 182.81. Goldman Sachs Group Inc (GS) is down 0.25% at 384.44, and Morgan Stanley (MS) is up 0.97% at 86.50.

Key Economic Events & Data Release Today:

(GBP) BoE Gov Bailey Speaks at 05:15.

(CAD) Core CPI (MoM) (Jan) Previous –0.5% at 08:30.

(CAD) CPI (MoM) (Jan) Forecast 0.4%, Previous –0.3% at 08:30.

(NZD) PPI Input (QoQ) (Q4) Forecast 0.4%, Previous 1.2% at 16:45