Market News
- U.S. stocks bounced back on Tuesday as largely on-target inflation data and easing jitters over contagion in the banking sector cooled expectations regarding the size of the rate hike at the Fed’s policy meeting next week.
- The Labour Department’s CPI report showed consumer prices cooled in February with headline and core measures notching welcome annual declines. Signs of economic softness, combined with the regional banking scare, have increased the odds that Fed will implement a 25 basis-point hike.
- Shock waves following the closure of Silicon Valley Bank and Signature Bank, which prompted Biden to vow he would contain the crisis and ensure the safety of the U.S. banking system, continued to reverberate throughout the sector.
Market Views
- Asia-Pacific markets rose on Wednesday morning after bank stocks on Wall Street rebounded on optimism of contagion risk from Silicon Valley Bank being contained. Hang Seng index rose 384 points and Nikkei 225 index gained 75 points.
- China’s industrial output rose 2.4% in the January to February period, official data showed. Economists polled by Reuters had expected to see a rise of 2.6%. Retail sales rose 3.5% for the same period, in line with expectations.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,124
Target price:
Protective stop:
Outlook
Price rebounded last night after reaching a price low of 31,435. We could see a price rebound to test its support-turned-resistance zone which is also the Fibonacci 50% correction point at 32,500. Stochastic is at the oversold zone and MACD is bearish
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 15,235
Target price:
Protective stop:
Outlook
This index rebounded from its previous low support zone of 14,883. We are likely to see price testing 15,295, which is the Fibonacci 50% correction point and the 20EMA. Stochastic is falling and MACD is bearish
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,206
Target price:
Protective stop:
Outlook
Price rebounded after reaching its previous price low support zone. A spinning top candlestick pattern was formed and a bullish candle was followed through. We are likely to see price rebounding to 12,466 and a penetration of this resistance will target for 12,890.
Trading Idea
Buy 12,000 for 12,500 with a stop below 11,800.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7634
Target price:
Protective stop:
Outlook
This index has reached its head and shoulder one to one price target, which is also the resistance-turned-support zone. Stochastic is at the oversold zone. Price could have a price rebound to 7792. MACD remains bearish.
Trading Idea
Wait for better trading idea.
