Market News
- Stocks were lower at the close on Tuesday, after IMF lowered its global growth outlook and as tensions over tariffs between the United States and Europe escalated. The 30-stock Dow Jones index closed 190 points lower. Both S&P 500 and Nasdaq Index closed lower.
- IMF cuts its forecast for world economic growth this year to 3.3% from 3.5%, saying the global economy is slowing more than expected and that a sharp downturn could require world leaders to coordinate stimulus measures.
- Global trade anxiety increased when U.S. President Trump threatened to impose tariffs on $11 billion worth of EU’s products, to compensate for what the US viewed as unfair subsidies to Airbus. The move came as markets remain on edge as U.S. negotiators try to hammer out trade deals with China and neighbours Mexico and Canada.
Market View
- Asian shares stepped back from eight-month highs on Wednesday. Stocks in Asia declined on Wednesday morning trade amid fresh concerns over the outlook for the global economy after IMF slashes 2019 growth outlook.
- Market focus is centered on corporate earnings results, with major U.S. banks set to kick off the first-quarter earnings season later in the week. Wall Street expectations for this earnings season imply a significant reduction to corporate profit growth in comparison to recent quarters.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 26,164
Target price: 26,970
Protective stop: 26,000
Outlook
20EMA point at 26,290 failed to hold and the index dropped lower to the previous support at 26,070. 20EMA has turned bearish. MACD has also turned bearish but Stochastic is into oversold extreme. The support at 20,070 will need to hold or the bullish trend could be threatened.
Trading Idea
Watch the support at 26,070 for directional clues.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation :
Last : 31,104
Target price: 30,650
Protective stop: 29,668
Outlook
Price reached another new high at 30,311 yesterday and could be heading higher to the Fibonacci 161.8% target at 30,650. Price is supported by a rising 20EMA at 30,025. Stochastic has a bearish divergence warning but MACD is still bullish. The trend is still bullish and could be heading higher to 30,650 but caution is advised as divergence warnings are starting to appear.
Trading Idea
Keep long for 30,650 with protective stop below 29,668.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation :
Last : 7573
Target price:
Protective stop:
Outlook
Price is currently sitting on 20EMA support at 7567. If price can hold above 7506, there is a chance for another new high. MACD is still bullish but there was a divergence warning. Stochastic also has a divergence warning and is moving lower. We could be approaching a market top soon and caution is advised
Trading Idea
Be cautious of a reversal. Watch support at 7490.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend : Bullish
Recommendation :
Last : 21,683
Target price:
Protective stop :
Outlook
Price reached a high of 21,973 and has moved below the 20EMA line and support zone around 21.670. Price will need to move above 21,670 again to remain bullish. A move below 21,530 will threatened the bullish trend. Both Stochastic and MACD have bearish divergence warnings. Watch the support at 21,530 for trend change warning.
Trading Idea
Wait for better trade idea.
