Market News
- Wall Street posted its worst performance of the year on Tuesday, with the main benchmarks ending down as investors interpreted a rebound in U.S. business activity in February to mean interest rates will need to stay higher for longer to control inflation.
- S&P Global Purchasing Manufacturer’s index that reflects business activity in U.S. returned to expansion for the first time in eight months in February. The 50.2 reading, up from 46.8 in January, was buoyed by a robust services sector.
- New Zealand’s central bank has raised interest rates by 50 basis points from 4.25% to 4.75, in line with economists’ expectations. The Reserve Bank of New Zealand indicated that interest rates could still rise, to ensure inflation returns to its target range over the medium term.
Market Views
- Asia-Pacific markets were mixed on Wednesday morning after Wall Street’s sharp losses overnight, and New Zealand central bank’s continued move to hike its benchmark interest rate. Hang Seng index rose 45 points while Nikkei 225 index dropped 358 points.
- Bank of Japan board member Naoki Tamura said that it is appropriate for the central bank to maintain its current ultra-dovish monetary policy stance, according to a speech
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,163
Target price:
Protective stop:
Outlook
Price broke and closed below the triangle pattern last night with a long bearish candle. We could see a return move to retest the rising trendline before the next downward movement to 31,890. Stochastic is falling and MACD is bearish.
Trading Idea
Sell 33,950 for 33,300 with a stop above 34,300.
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 15,500
Last: 15,380
Target price: 15,200
Protective stop: 15,700
Outlook
This index could have formed a price high at 15,656. This could be a possible top if price unable to penetrate this zone. We are likely to see price retracing to 14,900 if it violates the 20EMA support. Both Stochastic and MACD are falling.
Trading Idea.
Sell 15,500 with a stop above 15,700 for 15,200. Entry order was filled on 14 Feb.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,096
Target price:
Protective stop:
Outlook
Price broke and closed below the 20EMA last night with a bearish candle. The 20EMA is falling, suggesting potential downside ahead. MACD is bearish and Stochastic is falling. We are likely to see price falling to 11,510.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7956
Target price:
Protective stop:
Outlook
Price created a new high at 8044 on 16 Feb. This could be a possible price high and we are likely to see price retracing to 7834 if it violates the 20EMA support. Stochastic is at the overbought zone. MACD is falling and is giving potential divergence warning.
Trading Idea
Wait for better trading idea.
