. weekly Index Analysis - US Markets Roil as Dow Drops Amid Inflation Fears

weekly Index Analysis – US Markets Roil as Dow Drops Amid Inflation Fears

weekly Index Analysis – US Markets Roil as Dow Drops Amid Inflation Fears

01 Oct 2023

Introduction:

In the world of indices, a mixed picture emerges in the Asian markets, influenced by rising oil prices and Treasury yields. Notably, the Hang Seng Index in Hong Kong saw substantial gains, while other major indices experienced varying degrees of movement. Meanwhile, European shares concluded a challenging quarter with minor gains, and in the US, stocks dipped as investors reacted to the latest inflation data, capping off a turbulent third quarter marked by considerations of Federal Reserve policy.

Market In Focus for the Next Week – Dow Jones

Following US inflation figures, US markets declined, signaling a disappointing third quarter. The Dow Jones Industrial Average (.DJI) declined   158.84 points, or 0.47%, to 33,507.5.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 33954.63 | Negative Crossover | Bearish
  • MA 20: 34388.76 | Negative Crossover | Bearish
  • MA 50: 34579.09 | Negative Crossover | Bearish

Simple:

  • MA 5: 33944.1 | Negative Crossover | Bearish
  • MA 20: 34492.8| Negative Crossover | Bearish
  • MA 50: 34791.1 | Negative Crossover | Bearish

RSI (Relative Strength Index): 29.81 | Sell Zone | Bearish

Stochastic Oscillator: 4.55 | Sell Zone | Neutral

Resistance And Support Levels: 

  • R1: 34,459.25 | R2: 35,337.91
  • S1: 33,781.43 | S2: 32,827.46

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 33,354.65 | Take Profit: 32,827.46 | Stop Loss: 33,731.22.

Elsewhere in the Indices Market.

Asia markets mixed as Oil and Treasury yields climbed.

The Shanghai composite is up at 0.10%. Overall, the Singapore MSCI is down 0.14% to 285.25. Over in Hong Kong, the Hang Seng Index is up by 2.51% to 17,809.96. In Japan, the Nikkei 225 was down 0.05% to 31,857.62, while the Topix index was down 0.94% to 2,323.39. South Korea’s Kospi up 0.09% to 2,465.09. Australia S&P/ASX 200 is up 0.34% to, 7,048.60.

European shares ended the worst quarter in a year with a minor gain.

The DAX futures contract in Germany traded 0.41% higher, CAC 40 futures in France up 0.26% to 7,135.06 and the UK 100 futures contract in the U.K. up 0.08% to 7,608.08.

US stocks dip after US inflation data, ending weak third quarter.

On the final day of a challenging third quarter for equities, investors rebalanced their portfolios and considered the implications of a U.S. inflation report for the Federal Reserve’s interest rate policy, which contributed to the S&P 500’s lower closing price on Friday.

Indexes: Dow down 0.47%, S&P down 0.27%, Nasdaq up 0.14%.

Corporate News:

Tesla (TSLA) is up 1.56% at 250.22, Apple (AAPL) is up at 0.30% at 171.21, and Morgan Stanley (MS) is down at 0.63% at 81.67. JPMorgan Chase & Co (JPM) is down 1.74% at 145.02, and Goldman Sachs Group Inc, (GS) is down 0.50% at 323.57.

Key Economic Events & Data Release for Upcoming Week:

(USD) ISM Manufacturing PMI (Sep) (Monday).

(USD) Fed Chair Powell Speaks (Monday).

(GBP) Manufacturing PMI (Sep) (Monday)

(AUD) RBA Interest Rate Decision (Oct) (Tuesday).

(NZD) RBNZ Interest Rate Decision (Wednesday).

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

(USD) Initial Jobless Claims (Thursday).

(CAD) Ivey PMI n.s.a (Sep) (Thursday)