Market News
- Wall Street lost ground on Wednesday as weak U.S. economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter earnings reports. Dow Jones and Nasdaq Composite slipped 22 and 24 points respectively while S&P 500 declined 5 points, due to the drag from Microsoft which weighted heaviest.
- American retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for Fed to cut interest rates again later this month.
- U.S. Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators from two powerhouses were working on nailing down a Phase 1 trade deal text for their presidents to sign next month at the APEC Forum in Santiago.
Market Views
- Major Asia Pacific markets were higher in Wednesday’s morning trade as news overnight boosted Brexit optimism, despite a weak overnight US market. Hang Seng index climbed 222 points and Nikkei 225 index rose 31 points.
- Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,981
Target price:
Protective stop:
Outlook
The index has been moving higher after rebounding from the rising trendline. It is now near to its previous high of 27,310. The 20EMA is rising at the moment. We could see a possible correction back to test the 20EMA. Price will need to move above 27,125 for a test of 27,310 and its all-time high at 27,403. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,944
Target price:
Protective stop:
Outlook
The index has rebounded from the base low at 25,230 and has moved above the rising 20EMA. Price managed to stay above 26,490 for the past three days. It is on the way moving higher to test its previous high at 27,440. Stochastic is moving up at the moment. MACD has a bullish crossover in the bearish zone but MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7938
Target price :
Protective stop:
Outlook
Price has moved above the key 7780 resistance level after rebounding from the rising trendline. The 20EMA is rising at the moment and is providing a layer of support. Price is now near to its previous peak of 7976. The range for these two days has been narrowing which could be a hint of stalling uptrend. The index will only turn bearish if it breaks below the rising trendline. Stochastic is moving higher at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6755
Target price:
Protective stop :
Outlook
The index is capped by a declining trendline formed since end-July. Price will need to close above the trendline and 6810 for a test of 6834. The 20EMA is rising at the moment. We could see a correction back to test the 20EMA at 6700, which is also the Fibonacci 62% correction point, if price closes below yesterday’s low at 6747. Stochastic is rising at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea.
