Market News
- U.S. stock indexes closed lower on Thursday after data pointing to a tight labor market renewed concerns the Fed will continue its aggressive path of rate hikes that could lead the economy into a recession.
- A report from the Labour Department showed weekly jobless claims were lower than expected, indicating the labour market remains solid despite the Fed’s efforts to stifle demand for workers. Expectations the central bank would further dial down the size of its interest rate increases at its policy announcement next month were unchanged by the report.
- The People’s Bank of China left the loan prime rates for 1-year and 5-year unchanged, widely in line with expectations. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August, 2022.
Market Views
- Markets in the Asia-Pacific were higher on Friday morning as investors digested Japan’s inflation data. The nationwide core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. Hang Seng index rose 199 points and Nikkei 225 index gained 28 points.
- The e-commerce giant Amazon said on Thursday it will increase the prices of some of its music subscription plans from February to offset higher costs for shipping and wages.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 33,650
Last: 33,029
Target price: 34,250
Protective stop: 33,250 Triggered
Outlook
Price is currently testing the uptrend line support for a fifth time. This uptrend line support is crucial at 32,860. A violation of this support will bring price lower to 30,845. Stochastic is falling and MACD has turned bearish.
Trading Idea
Buy 33,650 for 34,250 with a stop below 33,250. Entry and stop were triggered on 18 Jan.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 26,647
Target price:
Protective stop:
Outlook
This index is in an attempt to penetrating its recent price high resistance level of 26,633. As long as price closes above this level, we are likely to see price testing 27,670. Stochastic is rising and MACD is moving higher towards its zero line.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,318
Target price:
Protective stop:
Outlook
The price correction has brought price lower to the 20EMA support at 11,279. Price has to rebound from this support to move higher, else, a violation of the 20EMA will bring price lower to 11,050. Stochastic is at the overbought zone and MACD is bullish
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7778
Target price:
Protective stop:
Outlook
Price created a recent price high of 7874. It is in a price correction and we are likely to see price retracing to the 20EMA at 7685. Stochastic is strong and bullish and is at the overbought zone. MACD remains bullish at the moment.
Trading Idea
Wait for better trading idea.
