Market News
- A strong rebound by financials helped Wall Street’s main indexes close firmly positive on Thursday, after some of U.S. largest lenders confirmed they would deposit up to $30 billion into First Republic Bank’s coffers to stabilize the lender.
- The latest twist in the U.S. regional banks saga came on the heels of a 50 basis point rate hike by the European Central Bank, which earlier in the day had dampened investor sentiment already hurt by fears of a banking crisis.
- U.S. Treasury Secretary Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits will be there when needed. U.S.-listed shares of Credit Suisse advanced after the bank secured a credit line of up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence.
Market Views
- Asia-Pacific markets were higher on Friday morning after major Wall Street banks pledged a deposit of $30 billion in First Republic Bank in an attempt to bolster confidence in the banking system. Hang Seng index rose 364 points and Nikkei 225 index gained 206 points.
- The Japan Center for Economic Research said that the consensus forecast for the economy’s wage growth in 2023 was raised to 3.05% in March from an expected rise of 2.85% seen in January.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,167
Target price:
Protective stop:
Outlook
Price rebounded after reaching a temporary low at 31,147. We are likely to see this index testing the 20EMA at 32,690, which is also the support-turned-resistance zone. Stochastic is rising from the oversold zone but MACD remains bearish.
Trading Idea
Sell 32,500 with a stop above 32,800 for 31,600.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 27,216
Target price:
Protective stop:
Outlook
This index rebounded after reaching a temporary low at 26,458. Price is likely to test the 20EMA at 27,550, which is also near to the Fibonacci 50% correction point. Stochastic could be rising from oversold zone but MACD remains bearish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 12,000
Last: 12,206
Target price: 12,500 Filled
Protective stop: 11,800
Outlook
Price rebounded after reaching its previous price low support zone. It moved above the 20EMA and we are likely to see price testing its previous price high resistance at 12,890. Stochastic is rising and MACD is bullish.
Trading Idea
Buy 12,000 for 12,500 with a stop below 11,800. Entry order was filled on 15 Mar. Profit order was filled on 16 Mar.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7454
Target price:
Protective stop:
Outlook
This index rebounded after creating a temporary bottom at 7316. Price could move higher to the support-turned-resistance zone, which is also the Fibonacci 38% correction point. Stochastic is rising but MACD is bearish.
Trading Idea
Wait for better trading idea.
