Introduction:

In the indices market, Asian markets exhibit a mixed picture as investors closely monitor regional inflation data. Shanghai and Hong Kong face losses, while Japan sees gains. Meanwhile, European stocks feel the repercussions of China’s challenges, with futures contracts in Germany, France, and the UK dipping. In the United States, futures decline amid lingering concerns over potential prolonged interest rate hikes, setting the stage for a week of economic data and Federal Reserve insights.

Market In Focus for today – S&P 500

The S&P 500 had its biggest weekly percentage decline since March on Friday as investors processed the Fed’s hawkish outlook revisions and benchmark Treasury rates reached multi-year highs.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

• MA 5: 4370.38 | Negative Crossover | Bearish
• MA 20: 4423.05 | Negative Crossover | Bearish
• MA 50: 4454.14 | Negative Crossover | Bearish

Simple:

• MA 5: 4368.37 | Negative Crossover | Bearish
• MA 20: 4445.13| Negative Crossover | Bearish
• MA 50: 4471.29 | Negative Crossover | Bearish

RSI (Relative Strength Index): 30.83 | Sell Zone | Bearish

Stochastic Oscillator: 13.14 | Sell Zone | Neutral

Resistance And Support Levels: 

• R1: 4436.87 | R2: 4546.54
• S1: 4353.13 | S2: 4237.48

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 4307.27 | Take Profit: 4237.48 | Stop Loss: 4355.12.

Elsewhere in the Indices Market

Asia markets mixed as investors look to inflation data across the region.

The Shanghai composite is down at 0.54%. Overall, the Singapore MSCI up 0.52% to 281.45. Over in Hong Kong, the Hang Seng Index is down by 1.82% to 17,729.29. In Japan, the Nikkei 225 was up 0.85% to 32,678.62, while the Topix index was up 0.39% to 2,385.50. South Korea’s Kospi down 0.49% to 2,495.76. Australia S&P/ASX 200 is up 0.11% to, 7,076.50.

European stocks fell at the beginning of the quarter last week due to China’s woes.

The DAX futures contract in Germany traded 0.64 lower, CAC 40 futures in France down 0.54% to 7,145.78, and the UK 100 futures contract in the U.K. down 0.23% to 7,642.37.

US futures decline due to ongoing concerns about rate increases.

On Monday, U.S. stock index futures declined as investors awaited economic data and comments from Federal Reserve policymakers throughout the week. The decline was attributed to worries that interest rates would rise for an extended period.

Indexes down: Dow 0.08%, S&P 500- 0.07%, Nasdaq 0.10%.

Corporate News:

Netflix Inc. (NFLX) is down 1.13% at 379.81, Nike Inc. (NKE) is down 0.81% at 90.85, and Amazon.com, Inc. (AMZN) is down at 0.16% at 129.12. JPMorgan Chase & Co (JPM) down 0.96% at 145.73, Morgan Stanley (MS) down 1.87% at 83.29.

Key Economic Events & Data Release Today:

(EUR) German Ifo Business Climate Index (Sep) Actual 85.7, Forecast 85.2, Previous 85.7 at 13:30.

(EUR) ECB President Lagarde Speaks at 18:30.