Market News
- Wall Street ended sharply higher on Thursday as economic data showed cooling inflation and a loosening labour market, fuelling optimism that the Federal Reserve could be nearing the end of its aggressive interest rate hike cycle.
- Data released before the bell showed a steeper-than-expected cooldown in producer prices and new claims for jobless benefits coming in above consensus. Both signal that the Fed’s hawkish barrage of rate hikes, which began over a year ago, is working as intended.
- Japan’s government approved a plan for the country’s first casino to open in Osaka. Under the plan, the project aims to open a casino, conference center as well as other facilities in 2029 with roughly $13 billion in initial investment, the report said.
Market Views
- Asia-Pacific markets were mixed on Friday morning, following the moves of Wall Street as the U.S. producer price index signaled further signs of cooling inflation. Hang Seng index fell 11 points while Nikkei 225 index rose 321 points.
- The Monetary Authority of Singapore maintained its monetary policy as its core inflation remains at the highest levels in 14 years. The economy saw a quarterly contraction of 0.7% and a marginal growth of 0.1% year-on-year, advance estimates showed.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,944
Target price:
Protective stop:
Outlook
This index continues to move higher after breaking out from the consolidation range. The 20EMA is still rising, suggesting the uptrend. MACD is bullish and Stochastic is at the overbought zone. We are likely to see price testing 34,110.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,324
Target price:
Protective stop:
Outlook
This index was capped by its previous price high resistance zone. It is going to test the 20EMA support at 20,225. If price violates the 20EMA, we see price moving lower to 19,540. Stochastic is falling but MACD remains bullish.
Trading Idea.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,076
Target price:
Protective stop:
Outlook
Price was being supported by the rising 20EMA. However, it could be consolidating within a flag pattern. We are likely to see price moving higher to 13,670 if it breakout from a flag pattern. Stochastic is likely to have a bullish crossover. MACD remains bullish.
Trading Idea
Sell 13,150 for 12,650 with a stop above 13,300.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7856
Target price:
Protective stop:
Outlook
This index is approaching the Fibonacci 161% projection level. Price may be due for a correction to the 20EMA at 7711. As long as it stays above the 20EMA, we see price moving higher. Stochastic is at the overbought zone but MACD is bullish
Trading Idea
Wait for better trading idea.
