Market News
- The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms overshadowed concerns over slowing U.S. economic growth. Shares in Meta closed up 13.9% after touching their highest level in more than a year after the company forecast quarterly revenue above estimates.
- U.S. economy expanded by 1.1% in the first quarter, a much-slower-than-expected pace, the Commerce Department said. Economists had forecast expansion of 2%. The report showed stronger inflation with prices increasing 4%, compared with an estimate of 3.7%.
- Japan’s unemployment rate rose to 2.8% in March, from 2.6% in February, government data showed. The reading was higher than Reuters’ forecasts of 2.5% and marks the highest reading since January 2022. The nation’s jobs-to-applicant ratio was at 1.32, below Reuters’ forecasts of 1.34.
Market Views
- Asian markets rallied on Friday morning after Wall Street logged one of its best days in the year, powered by earnings from Big Tech companies. Hang Seng index rose 189 points and Nikkei 225 index gained 198 points.
- Bank of Japan officials have started planning a “broad policy review” including discussions of a change to its forward guidance. The report added while the talks include deferring a decision on YCC tweaks, there is a possibility of a follow-through taking around a year after the review.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,794
Target price:
Protective stop:
Outlook
This index rebounded strongly from its support zone last night, forming a big bullish engulfing candlestick pattern. We are likely to see price testing its previous high at 34,130 again. Stochastic is still weak but MACD remains bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,972
Target price:
Protective stop:
Outlook
This index was capped by the 20EMA resistance point, coinciding with the Fibonacci 50% correction point. Stochastic is near to the oversold zone but MACD remains bearish. We could see price continuing its downward movement if it remains below the 20EMA.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 13,150
Last: 13,125
Target price: 12,650
Protective stop: 13,150 Triggered
Outlook
Price re-tested its previous high resistance point for a fourth occasion after a one-day strong rally last night. If price unable to penetrate this resistance, we see price falling to 12,820 again. Stochastic just had a bullish crossover but still weak. MACD is weak as well.
Trading Idea
Sell 13,150 for 12,650 with a stop above 13,300. Lower stop to 13,150 on 26 April. Stop was triggered on 27 Apr.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7856
Target price:
Protective stop:
Outlook
This index rebounded after being supported by the 20EMA support. As long as it stays above the 20EMA, we see price testing 7934 again. A violation of the 20EMA is likely to lead to a decline to 7650. Stochastic is falling but MACD remains bullish
Trading Idea
Buy 7820 for 7925 with a stop below 7790.
