Market News
- Wall Street plunged on Thursday in a broad sell-off as recession fears grew following moves by central banks around the globe to stamp out rising inflation after Fed’s largest rate hike since 1994. The Dow slipped 2.4% while S&P 500 and Nasdaq plummeted over 3.2%.
- U.S. Fed announced Wednesday an interest rate hike of 75 basis points, sparking worries of an economic downturn. The Swiss National Bank also unexpectedly hike rates by 50 basis points on Thursday, while the Bank of England raised its interest rates to 1.25% on the same day.
The CBOE volatility index, which is known as Wall Street’s fear gauge, rose to slightly below the one-month high of 35.05 touched earlier this week. Many analysts expect the VIX to reach around 40 as one of the signals that selling pressure may be reaching its apex
Market Views
- Asian markets were mixed on Friday morning on concerns about an economic downturn as monetary policy tightens. Hang Seng index advanced 127 points while Nikkei 225 index dropped 572 points.
- The Bank of Japan will hand down its monetary decisions later in the day, which is set to remain at ultra-low rates, but investors doubt on whether the BOJ will stick to its stance as Japan’s 10-year bond yield hit 0.265%, the highest since 2016.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 30,100
Target price:
Protective stop:
Outlook
Price continued its downward movement last night after violating its recent low. This downward momentum could continue if price cannot move above the support-turned-resistance level. Stochastic is at the oversold region and MACD is bearish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,981
Target price:
Protective stop:
Outlook
Price is currently holding at its resistance-turned-support zone. If it can sustain at this zone, we see price moving higher again. A failure move will hint for deeper correction. Stochastic is falling and MACD is bullish.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,199
Target price:
Protective stop:
Outlook
This index failed to penetrate the support-turned-resistance level. A Bearish Engulfing candlestick pattern was formed last night and we could see further correction ahead. Stochastic is in the oversold region and MACD is bearish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3686
Target price:
Protective stop:
Outlook
Price unable to surpass its support-turned-resistance level and formed a Bearish Engulfing candlestick pattern last night. We could see further correction ahead. Stochastic is in the oversold zone and MACD is bearish.
Trading Idea
Wait for better trading idea.
