. Weekly Index Analysis - Global markets volatile, Asia hopeful, Europe uncertain.

Weekly Index Analysis – Global markets volatile, Asia hopeful, Europe uncertain.

Weekly Index Analysis – Global markets volatile, Asia hopeful, Europe uncertain.

09 Mar 2024

Introduction:

Asian markets exhibit gains on hopes of a Fed rate cut, with Shanghai, Singapore, Hong Kong, Nikkei, and Kospi all recording positive movements. Meanwhile, European stocks wrap up with a varied performance, influenced by U.S. jobs data and signals from the European Central Bank. Wall Street retreats from recent highs, led by Nasdaq declines, following a mixed labor market report impacting investor sentiment.

Market In Focus for the Next Week – Dow Jones

U.S. equities concluded Friday’s session on a lower note Dow Jones ended lower after the February jobs report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38837.22 | Negative Crossover | Bearish
  • MA 20: 38818.65 | Negative Crossover | Bearish
  • MA 50: 38415.26 | Positive Crossover | Bullish

Simple:

  • MA 5: 38837.05 | Negative Crossover | Bearish
  • MA 20: 38880.65| Negative Crossover | Bearish
  • MA 50: 38515.26 | Positive Crossover | Bullish

RSI (Relative Strength Index): 50.10| Buy Zone| Bullish

Stochastic Oscillator: 23.34| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38861.39 | R2: 39328.42
  • S1: 38458.07| S2: 38023.11

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: Limit Sell: 38909.70 | Take Profit: 38458.78| Stop Loss: 39264.00.

S&P 500:

Stocks pulled back on Friday, marking the end of a volatile week, with Nvidia’s remarkable surge taking a pause, The S&P 500 experienced a 0.65% decline.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5117.84 | Positive Crossover | Bullish
  • MA 20: 5088.18 | Positive Crossover | Bullish
  • MA 50: 4988.89 | Positive Crossover | Bullish

Simple:

  • MA 5: 5120.33 | Positive Crossover | Bullish
  • MA 20: 5085.75| Positive Crossover | Bullish
  • MA 50: 4987.45| Positive Crossover | Bullish

RSI (Relative Strength Index): 61.28| Bullish Zone| Positive

Stochastic Oscillator: 46.61|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5162.98 | R2: 5282.59
  • S1: 5045.44| S2: 4928.90

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5049.53 | Take Profit: 5176.11| Stop Loss: 4874.52.

FTSE 100:

The FTSE 100 in the UK registers a weekly decline, while the Pound strengthens amid expectations of a potential Fed rate cut.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7673.02 | Positive Crossover | Bearish
  • MA 20: 7665.92 | Positive Crossover | Bearish
  • MA 50: 7638.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 7670.52 | Negative Crossover | Bearish
  • MA 20: 7665.92| Negative Crossover | Bearish
  • MA 50: 7642.36| Positive Crossover | Bullish

RSI (Relative Strength Index): 50.11| Buying Zone| Buy

Stochastic Oscillator: 52.87|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7724.5 | R2: 7810.5
  • S1: 7641.6| S2: 7557.3

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:   Limit Sell: 7665.4 | Take Profit: 7579.9| Stop Loss: 7723.0.

DAX 40:

Germany’s stocks experienced a downturn at Friday’s close, with losses in the Retail, Construction, Transportation & Logistics sectors leading the decline.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17694.47 | Positive Crossover | Bullish
  • MA 20: 17530.13 | Positive Crossover | Bullish
  • MA 50: 17174.22 | Positive Crossover | Bullish

Simple:

  • MA 5: 17738.09 | Positive Crossover | Bullish
  • MA 20: 17473.35| Positive Crossover | Bullish
  • MA 50: 17121.22| Positive Crossover | Bullish

RSI (Relative Strength Index): 68.22| Positive Zone| Bullish

Stochastic Oscillator: 65.69|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 17899.3 | R2: 18285.0
  • S1: 17445.5| S2: 17116.5

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 17496.8 | Take Profit: 17898.4| Stop Loss: 17260.5.

Elsewhere in the Indices Market

Asian markets gain on Fed rate cut hopes.

The Shanghai composite is up at 0.39%. Overall, the Singapore MSCI up 0.62% to 3046.02. Over in Hong Kong, the Hang Seng Index up 0.76% to 16,353.39. In Japan, the Nikkei 225 was up 0.23% to 39,688.94, while the Topix index was up 0.30% to 2726.80. South Korea’s Kospi up 1.24% to 2,680.35. Australia S&P/ASX 200 is up 1.07% to, 7,847.00.

European stocks conclude with a mixed performance as investors evaluate U.S. jobs data and signals from the European Central Bank (ECB).

The DAX futures contract in Germany traded 0.16 lower, CAC 40 futures in France up 0.15% to 8,028.01, and the UK 100 futures contract in the U.K. down 0.43% to 7,659.34.

Wall Street retreats from record levels, led by declines in the Nasdaq.

The S&P 500 and Nasdaq concluded the week on a lower note after reaching record highs earlier, as semiconductor stocks reversed gains. A mixed labor market report, which revealed more new jobs than anticipated alongside a climbing unemployment rate, contributed to the market’s downturn.

Indexes: Dow down 0.18%, S&P 500- down 0.65%, Nasdaq down 1.16%.

Corporate News:

Tesla (TSLA) is down 1.85% at 175.34, Apple (AAPL) is up 1.02% at 170.73, and Morgan Stanley (MS) is up 1.04% at 87.04. JPMorgan Chase & Co (JPM) is up 0.19% at 188.22, and Goldman Sachs Group Inc, (GS) is down 0.37% at 386.99.

Key Economic Events & Data Release for Upcoming Week:

(AUD) Building Approvals (MoM) (Monday)

(EUR) German CPI (MoM) (Feb) (Tuesday)

(GBP) Average Earnings Index + Bonus (Jan) (Tuesday)

(USD) CPI (MoM) (Feb) (Tuesday)

(GBP) Manufacturing Production (MoM) (Jan) (Wednesday)

(GBP) GDP (MoM) (Jan) (Wednesday)

(EUR) Industrial Production (MoM) (Jan) (Wednesday)

(USD) Crude Oil Inventories (Wednesday)

(USD) Retail Sales (MoM) (Feb) (Thursday)

(USD) Core Retail Sales (MoM) (Feb) (Thursday)

(USD) Initial Jobless Claims (Thursday)