. Weekly Index Analysis - US Inflation Boosts Wall Street, European Markets Dip.

Weekly Index Analysis – US Inflation Boosts Wall Street, European Markets Dip.

Weekly Index Analysis – US Inflation Boosts Wall Street, European Markets Dip.

29 Jun 2024

Introduction:

Asian stocks continue their rally for a fifth consecutive month, buoyed by hopes of lower US inflation. Meanwhile, European stocks closed lower following U.S. inflation data, and Wall Street stocks rose amid positive inflation figures and reactions to President Joe Biden’s debated performance.

Market In Focus for the Next Week – Dow Jones

The Dow Jones continues to hover just above the 39,000 mark.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39517.28 | Negative Crossover | Bearish
  • MA 20: 39487.89 | Positive Crossover | Bullish
  • MA 50: 39322.34 | Positive Crossover | Bullish

Simple:

  • MA 5: 39492.90 | Positive Crossover | Bullish
  • MA 20: 39569.06| Negative Crossover | Bearish
  • MA 50: 39224.67 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.34| Buy Zone| Bullish


Stochastic Oscillator: 13.72| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 39719.98 | R2: 40183.83
  • S1: 39266.22| S2: 38782.81


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Limit Buy : 39296.47 | Take Profit: 39840.99| Stop Loss: 38983.88.

S&P 500:

The S&P 500 reaches a new peak as the PCE index meets forecasts.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5539.32 | Negative Crossover | Bearish
  • MA 20: 5533.80 | Positive Crossover | Bullish
  • MA 50: 5489.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 5539.98 | Negative Crossover | Bearish
  • MA 20: 5535.00| Positive Crossover | Bullish
  • MA 50: 5490.38| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.01| Buy Zone| Bullish


Stochastic Oscillator: 25.93|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5570.73 | R2: 5639.45
  • S1: 5496.97| S2: 5431.60


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Limit Buy : 5464.51 | Take Profit: 5576.13| Stop Loss: 5394.48.

FTSE 100:

British equities ended the week on a negative note due to stronger-than-expected GDP data raising concerns about potential interest rate cuts by the Bank of England, while a favourable U.S. inflation reading for May lifted market sentiment.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8211.30 | Negative Crossover | Bearish
  • MA 20: 8222.14 | Negative Crossover | Bearish
  • MA 50: 8231.88 | Negative Crossover | Bearish

Simple:

  • MA 5: 8215.03 | Negative Crossover | Bearish
  • MA 20: 8240.77| Negative Crossover | Bearish
  • MA 50: 8220.31| Negative Crossover | Bearish

RSI (Relative Strength Index): 41.7| Neutral Zone| Neutral


Stochastic Oscillator: 7.06|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 8277.0 | R2: 8436.9
  • S1: 8143.1| S2: 7975.8


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:   Stop Sell: 8128.2 | Take Profit: 7942.3| Stop Loss: 8269.5.

DAX 40:

German stocks closed the trading week on a positive note, buoyed by new data indicating growing consumer optimism about inflation in the eurozone, ahead of the French snap parliamentary elections.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18204.15 | Negative Crossover | Bearish
  • MA 20: 18199.11 | Positive Crossover | Bullish
  • MA 50: 18270.07 | Positive Crossover | Bullish

Simple:

  • MA 5: 18187.18 | Negative Crossover | Bearish
  • MA 20: 18190.46| Positive Crossover | Bullish
  • MA 50: 18270.02| Positive Crossover | Bullish

RSI (Relative Strength Index): 53.31| Positive Zone| Bullish


Stochastic Oscillator: 94.92|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 18288.2 | R2: 18633.0
  • S1: 18035.3| S2: 17759.4


Overall Sentiment: Neutral | Market Direction: Buy


Trade Suggestion:  Stop Buy : 18345.7 | Take Profit: 18633.0| Stop Loss: 18167.5.


Elsewhere in the Indices Market

Asian stocks extend their rally for a fifth month in a row, as hopes for lower US inflation lift investor sentiment.

The Shanghai composite is down at 0.73%. Overall, the Singapore MSCI down 0.30% to 314.55. Over in Hong Kong, the Hang Seng Index up 0.01% to 17,718.61. In Japan, the Nikkei 225 up 0.61% to 39,583.08, while the Topix index was up 0.57% to 2809.63. South Korea’s Kospi up 0.49% to 2,797.82. Australia S&P/ASX 200 up 0.10% to, 7,767.50.

European stocks closed lower following U.S. inflation data.

The DAX futures contract in Germany traded 0.14 higher, CAC 40 futures in France down 0.68% to 8,094.97 and the UK 100 futures contract in the U.K. down 0.19% to 8,164.12.

US stocks rise on positive inflation data.

Wall Street stocks rose following favourable US inflation data, as markets weighed the impact of a presidential debate where President Joe Biden’s performance was broadly criticized.

Indexes: Dow down 0.01%, S&P 500- down 0.41%, Nasdaq down 0.71%.


Corporate News:

Tesla (TSLA) up 0.23% at 197.88, Apple (AAPL) down at 1.63% at 210.62, Morgan Stanley (MS) up at 1.48% at 97.19. JPMorgan Chase & Co (JPM) up 1.55% at 202.26, Goldman Sachs Group Inc, (GS) up 1.43% at 452.32.

Key Economic Events & Data Release for Upcoming Week:

(EUR) German Manufacturing PMI (Jun) (Monday)

(GBP) Manufacturing PMI (Jun) (Monday)

(EUR) German CPI (MoM) (Jun) (Monday)

(USD) Manufacturing PMI (Jun)(Monday)

(EUR) ECB President Lagarde Speaks (Monday)

(AUD) RBA Meeting Minutes (Monday)

(EUR) CPI (YoY) (Jun) (Tuesday)

(USD) Fed Chair Powell Speaks at (Tuesday)

(USD) JOLts Job Openings (May) (Tuesday)

(GBP) Composite PMI (Jun) (Wednesday)

(GBP) Service PMI (Jun) (Wednesday)

(USD) ADP Nonfarm Employment Change (Jun) (Wednesday)

(USD) Initial Jobless Claims (Wednesday)

(USD) ISM Non-Manufacturing PMI (Jun) (Wednesday)

(EUR) ECB President Lagarde Speaks (Wednesday)