Market News
- Major U.S. stock indexes fell more than 1% each on Tuesday as regional bank shares tumbled on renewed fears over the financial system and as investors tried to gauge how much longer the Federal Reserve may need to hike interest rates.
- The Fed is expected to announce Wednesday it will raise rates 25 basis points, and investors are anxious for any signals from the central bank on whether it will be the last hike for now, or if further increases are possible if inflation remains high.
- Treasury Secretary Janet Yellen said the federal government could be unable by June 1 to meet all of its payment obligations without legislation to raise Washington’s borrowing limit.
Market Views
- Asian stocks were mixed on Wednesday morning with losses skewed towards financial shares as a rout in U.S. banks spilled over, while investors also turned cautious before the conclusion of Fed meeting later in the day. Hang Seng index fell 348 points while Nikkei 225 index rose 34 points.
- Oil prices fell sharply Tuesday following an unexpected contraction in Chinese factory activity, reported Sunday, and ahead of further interest rate hikes expected from the Fed and European Central Bank this week.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,725
Target price:
Protective stop:
Outlook
This index managed to stay above the 20EMA despite the intraday penetration, keeping the uptrend intact. As long as it stay above the 20EMA, we are likely to see price testing its high of 34,258 again. Stochastic is rising and MACD remains bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,551
Target price:
Protective stop:
Outlook
This index was capped by the 20EMA resistance point, coinciding with the Fibonacci 50% correction point. It is going to test its previous low of 19,381, and once this low is violated, we could expect a further decline to 18,810. Stochastic is weak and MACD is bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,125
Target price:
Protective stop:
Outlook
Price is likely to range within the sideway consolidation zone of 12,815 and 13,288 until either ends is broken. Since it is deviating from the upper boundary, price is expected to test the lower boundary at 12,815. Stochastic is likely to fall. MACD could be giving potential divergence warning.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Long @ 7820
Last: 7856
Target price: 7925
Protective stop: 7790 triggered
Outlook
This index has been moving lower after reaching a price high at 7934. It violated the 20EMA yesterday and if it can’t move back above the 20EMA, we are likely to see price moving lower to 7570. Stochastic is falling but MACD remains bullish.
Trading Idea
Buy 7820 for 7925 with a stop below 7790. Entry order was filled on 28 April. Stop was triggered on 28 April.
