. Weekly Index Analysis - European Market Surge Sparks Anticipation for Rate Cuts.

Weekly Index Analysis – European Market Surge Sparks Anticipation for Rate Cuts.

Weekly Index Analysis – European Market Surge Sparks Anticipation for Rate Cuts.

02 Dec 2023

Introduction:

In the global indices market, Asian stocks face a decline as Wall Street concludes its best month of the year with significant gains. The Shanghai composite is up by 0.07%, while the Singapore MSCI rises by 0.80%. Conversely, the Hang Seng Index in Hong Kong experiences a 1.25% decline. European shares reach four-month highs, driven by a rally in miners. The DAX futures in Germany trade 1.12% higher, and CAC 40 futures in France rise by 0.48%. In the U.S., stocks close higher as comments from Federal Reserve Chair Jerome Powell raise hopes that peak policy rates have been reached.

Market In Focus for the Next Week – FTSE 100

On Friday, European shares built on their November momentum, driven by substantial increases in mining stocks and persistent declines in euro zone bond yields, fostering expectations of imminent interest rate cuts.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7473.29 | Positive Crossover | Bullish
  • MA 20: 7458.79 | Positive Crossover | Bullish
  • MA 50: 7469.77 | Positive Crossover | Bullish

Simple:

  • MA 5: 7460.36 | Positive Crossover | Bullish
  • MA 20: 7451.31| Positive Crossover | Bullish
  • MA 50: 7477.32 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.05| Buy Zone| Bullish

Stochastic Oscillator: 56.15|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7515.3 | R2: 7700.3
  • S1: 7376.6| S2: 7200.9

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 7552.3 | Take Profit: 7700.3| Stop Loss: 7469.1.

Elsewhere in the Indices Market

Asian stocks decline as Wall Street closes out 23’s best month with significant gains.

The Shanghai composite is up at 0.07%. Overall, the Singapore MSCI up 0.80% to 273.50. Over in Hong Kong, the Hang Seng Index down by 1.25% to 16,830.30. In Japan, the Nikkei 225 down 0.17% to 33,431.51, while the Topix index was up 0.32% to 2,382.52. South Korea’s Kospi down 0.73% to 2,469.63. Australia S&P/ASX 200 up 0.20% to, 7,073.20.

European shares to four-month highs as miners’ rally propels

The DAX futures contract in Germany traded 1.12% higher, CAC 40 futures in France up 0.48% to 7,346.15 and the UK 100 futures contract in the U.K. up 1.01% to 7,529.35.

US stocks close higher as Powell raises peak rate hopes.

On Friday, the US stock market indices concluded with gains, and the S&P achieved its highest year-end close. This surge followed comments from US Federal Reserve Chair Jerome Powell, reinforcing the perception that pivotal policy rates have reached their peak.

Indexes: Dow up 0.82%, S&P up 0.59%, Nasdaq up 0.55%.

Corporate News:

Tesla (TSLA) down 0.52% at 238.83, Apple (AAPL) up at 0.68% at 191.24, Morgan Stanley (MS) up at 1.95% at 80.89. JPMorgan Chase & Co (JPM) up 0.49% at 156.84, Goldman Sachs Group Inc, (GS) up 2.02% at 348.43.

Key Economic Events & Data Release for Upcoming Week:

(CHF) CPI (MoM) (Nov) (Monday).

(EUR) ECB President Lagarde Speaks (Monday).

(AUD) RBA Interest Rate Decision (Tuesday)

(USD) JOLTs Job Openings (Oct) (Tuesday).

(USD) ISM Non-Manufacturing PMI (Nov) (Tuesday).

(AUD) GDP (QoQ) (Q3) (Wednesday).

(EUR) Retail Sales (MoM) (Oct) (Wednesday).

(GBP) BoE Gov Bailey Speaks at 16:30 (Wednesday).

(USD) ADP Nonfarm Employment Change (Nov) (Wednesday).

(CAD) BoC Interest Rate Decision (Wednesday).

(AUD) Building Approvals (Thursday).