Market News
- Wall Street’s three major indexes posted gains on Thursday mainly lifted by financial institutions and healthcare companies, as investors digested hawkish remarks from policymakers that cemented bets of a large interest rate hike later this month.
- Worries over aggressive monetary tightening across the globe stalled equity markets on Thursday after the European Central Bank hiked interest rates by an unprecedented 75 basis points and signaled further hikes.
- China’s consumer inflation came in at 2.5% in August, lower than the 2.7% recorded in July. China’s weak growth outlook and accommodative monetary policy stance against the aggressive tightening underway by the FOMC will keep USD/CNH well supported.
Market Views
- Asian markets were higher following overnight’s Wall Street rally as investors digested Fed Chair Jerome Powell’s latest comments as he vowed to raise rates to tackle inflation until the job is done. Hang Seng index gained 488 points and Nikkei 225 index was up 117 points.
- Hong Kong-listed shares of Chinese video and gaming company Bilibili plunged more than 16% at the open after reporting a miss on its second-quarter earnings overnight.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 31,846
Target price:
Protective stop:
Outlook
Price rebounded after forming a bullish engulfing candlestick pattern two days ago, hinting at the possible reversal ahead. We are likely to see price testing the 20EMA resistance point at 32,160. Stochastic is rising and MACD has a bullish crossover.
Trading Idea
Buy 31,700 with a stop below 31,450 for 32,150.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,310
Target price:
Protective stop:
Outlook
Price is the process of forming a bullish engulfing reversal candlestick pattern, hinting at the end of the decline and a possible reversal. Stochastic is at the oversold zone and MACD is rising. We are likely to see price testing the 20EMA at 19,540.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,383
Target price:
Protective stop:
Outlook
Price rebounded with a bullish engulfing reversal candlestick pattern two days ago, hinting at the possible reversal ahead. Stochastic is rising from the oversold region and MACD has a bullish crossover. We are likely to see price rebounding to test the 20EMA at 12,540.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4020
Target price:
Protective stop:
Outlook
Price rebounded from its Fibonacci 62% correction point after forming a bullish engulfing reversal candlestick pattern. It is going to test the overhead 20EMA at 4038. Stochastic is rising and MACD has a bullish crossover.
Trading Idea
Buy 4000 with a stop below 3965 for 4070.
