. Daily Index Analysis - Stocks plummet, yields surge, investors brace.

Daily Index Analysis – Stocks plummet, yields surge, investors brace.

Daily Index Analysis – Stocks plummet, yields surge, investors brace.

03 Apr 2024

Introduction:

Global markets faced declines as Asian equities fell after Wall Street experienced a downturn fuelled by concerns over interest rate adjustments. In Asia, major indices like the Hang Seng and Nikkei 225 experienced notable drops. European equities, meanwhile, remained relatively stable ahead of the release of inflation data. Concurrently, U.S. stocks witnessed a 1% decline, accompanied by a surge in Treasury yields, reflecting apprehensions over potential rate cuts by the Federal Reserve.

Market In Focus for today – Dow Jones

Dow Jones Industrial Average declined for the second consecutive day, continuing Wall Street’s lackluster start to the quarter.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39729.5 | Negative Crossover | Bearish
  • MA 20: 39824.6 | Negative Crossover | Bearish
  • MA 50: 39687.2 | Negative Crossover | Bearish

Simple:

  • MA 5: 39829.8 | Negative Crossover | Bearish
  • MA 20: 39953.7| Negative Crossover | Bearish
  • MA 50: 39717.9 | Negative Crossover | Bearish

RSI (Relative Strength Index): 35.49| Buying Zone| Buy

Stochastic Oscillator: 1.95| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 39749.56 | R2: 40345.36
  • S1: 39206.95| S2: 38600.50

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Limit Sell: 39675.08 | Take Profit: 39175.03| Stop Loss: 40058.10.

S&P 500:

On U.S. stock indexes experienced a downturn on Tuesday, The S&P 500 Index slid to 5195.15, down 48.62 or -0.93%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5276.25 | Negative Crossover | Bearish
  • MA 20: 5281.78 | Negative Crossover | Bearish
  • MA 50: 5251.97 | Positive Crossover | Bullish

Simple:

  • MA 5: 5285.72 | Negative Crossover | Bearish
  • MA 20: 5291.87| Negative Crossover | Bearish
  • MA 50: 5253.36 | Positive Crossover | Bullish

RSI (Relative Strength Index): 38.62| Sell Zone| Negative

Stochastic Oscillator: 1.02| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5332.94 | R2: 5398.60
  • S1: 5221.25| S2: 5110.14

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion:  Limit Buy : 5227.28 | Take Profit: 5332.10| Stop Loss: 5163.54.

FTSE 100:

The FTSE 100 surged to a 14-month high of 8,017 but quickly reversed course with a significant sell-off, as concerns mount over the resurgence of inflation. Investors are now eyeing the late March low of 7,889.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7950.70 | Negative Crossover | Bearish
  • MA 20: 7929.04 | Negative Crossover | Bearish
  • MA 50: 7854.80 | Positive Crossover | Bullish

Simple:

  • MA 5: 7960.28 | Negative Crossover | Bearish
  • MA 20: 7948.00| Negative Crossover | Bearish
  • MA 50: 7830.84 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.89| Bullish Zone| Positive

Stochastic Oscillator: 3.01| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 8037.3 | R2: 8187.1
  • S1: 7906.5| S2: 7781.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 7842.8 | Take Profit: 7968.5| Stop Loss: 7769.1.

DAX 40:

Despite German inflation reaching a three-year low, the DAX 40 retreated on Tuesday, testing the accelerated uptrend line from February to March, which held at 18,274. By Wednesday morning, it briefly dipped below this line before bouncing back. Above this level, minor resistance is noted around the March 27 low at 18,382.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18496.84 | Positive Crossover | Bullish
  • MA 20: 18416.42 | Positive Crossover | Bullish
  • MA 50: 18155.50 | Positive Crossover | Bullish

Simple:

  • MA 5: 18435.11 | Positive Crossover | Bullish
  • MA 20: 18398.81 | Positive Crossover | Bullish
  • MA 50: 18179.51 | Positive Crossover | Bullish

RSI (Relative Strength Index): 53.51| Bullish Zone| Positive

Stochastic Oscillator: 5.21| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 18593.8 | R2: 18972.9
  • S1: 18260.2 S2: 17903.8

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 18138.8 | Take Profit: 18586.2| Stop Loss: 17873.4.

Elsewhere in the Indices Market:

Asian equities decline after Wall Street sinks on rate worries.

The Shanghai composite is down at 0.18%. Overall, the Singapore MSCI down 0.60% to 291.38. Over in Hong Kong, the Hang Seng Index is down 1.22% to 16,725.10. In Japan, the Nikkei 225 was down 0.97% to 39,451.85, while the Topix index was down 0.29% to 2706.51. South Korea’s Kospi down 1.68% to 2,706.97. Australia S&P/ASX 200 down 1.34% to, 7,882.50.

European equities remain largely unchanged as investors exercise caution before the release of inflation data.

The DAX futures contract in Germany traded 0.28 higher, CAC 40 futures in France up 0.23% to 8,149.15 and the UK 100 futures contract in the U.K. down 0.35% to 7,907.21.

Stocks decline while yields rise as the outlook for rate cuts takes a negative turn.

On Tuesday, the three primary U.S. stock indices experienced a 1% drop, and the yield on the 10-year Treasury note surged to its highest level in four months. This movement came following data indicating robust labor demand, leading to speculation that the Federal Reserve might postpone interest rate cuts.

Indexes: Dow down 0.4%, S&P 500- down 0.72%, Nasdaq down 0.89%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.02% at 614.21, Tesla, Inc. (TSLA) is down 4.90% at 166.63, and Apple Inc. (AAPL) is down 0.70% at 168.84. Goldman Sachs Group Inc (GS) down 0.81% at 410.15, Morgan Stanley (MS) down 0.88% at 92.71.

Key Economic Events & Data Release Today:

(EUR) CPI (YoY) (Mar) Forecast 2.5%, Previous 2.6% at 14:30.

(USD) ADP Nonfarm Employment (Mar) Forecast –148K, Previous –140K at 17:45.

(USD) ISM Non-Manufacturing PMI (Mar) Forecast 52.8, Previous 52.5 at 19:30.

(USD) Fed Chair Powell Speaks at 21:40.