Market News
- Wall Street ended a choppy session higher on Thursday as investors grappled with an onslaught of economic data and a string of mixed corporate earnings, all while eyeing the clock as it ticks down toward next week’s Fed monetary policy meeting.
- A raft of data showed the U.S. economy fared better in the fourth quarter than analysts expected, and the labour market remains tight, despite some signs of weakening demand. This is a double-edged sword for investors, as it could embolden the Fed to keep key interest rates at restrictive levels for longer.
- The producer price index in Australia rose 5.8% for the final quarter of 2022 on an annualized basis, data from the Australian Bureau of Statistics showed. The reading was slightly lower than the previous quarter’s print of 6.4%, signal inflation may be easing in the nation.
Market Views
- Asian markets were higher on Friday morning as traders digested Tokyo’s core consumer prices that rose 4.3%, nearing the highest for Japan’s capital since mid-1981. Hang Seng index rose 14 points and Nikkei 225 index gained 18 points.
- Oil prices rose about 2% on Thursday on expectations that global demand will strengthen as top oil importer China reopens its economy and on positive U.S. economic data.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,889
Target price:
Protective stop:
Outlook
Price managed to stay above the 20EMA which is acting as support at the moment. The next resistance lies at 34,330. Stochastic remains weak. MACD is bullish but appears to have losing strength.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 27,388
Target price:
Protective stop:
Outlook
This index has reached its support-turned-resistance level and if price can’t break through this level, we are likely to see a price correction to the 20EMA at 26,780. Stochastic is at the overbought zone. MACD remains bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,976
Target price:
Protective stop:
Outlook
Price rebounded after trading near to the 20EMA support. It could head higher to test the resistance zone at 12,120. Stochastic is at the overbought region. MACD remains bullish but there is potential divergence warning.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Long @ 7720
Last: 7773
Target price:
Protective stop:
Outlook
Price broke out from a declining trendline today. We would like to see a firm close to confirm the breakout for a target of 7874. The 20EMA is acting as support currently. Stochastic is falling but MACD remains bullish.
Trading Idea
Buy 7720 for 7860 with a stop below 7650. Entry level was filled on 25 Jan.
