Market News
- Wall Street ended lower on Thursday after PacWest’s move to explore strategic options deepened fears about the health of U.S. lenders and hit shares of regional banks as well as JPMorgan Chase, Wells Fargo & Co and other major financial players.
- Regional banks and tightening credit conditions are weighing on the market as investors try to recalibrate on where we are in terms of credit cycles and bank lending standards, and when a potential recession may hit, said managing director of diversifying strategies at TIFF Investment Management.
- The Fed on Wednesday raised interest rates by 25 basis points, while Chair Jerome Powell said that it was too soon to say with certainty that the rate-hike cycle was over as inflation remains the chief concern.
Market Views
- Asian markets were higher on Friday morning, recovering a measure of recent losses as markets awaited more cues on a brewing U.S. banking crisis, while softer-than-expected economic readings saw Chinese markets lag their peers. Hang Seng index rose 128 points and Nikkei 225 index gained 34 points.
- Australia’s central bank still sees that “some further tightening of monetary policy” may be required to rein in inflation, the Reserve Bank of Australia said in its May Statement on Monetary Policy.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,203
Target price:
Protective stop:
Outlook
This index broke and closed below its neckline support, forming a potential double top chart pattern. As long as price moves below the neckline which has become a resistance at 33,250, we see price moving lower to 32,460. Stochastic is falling and MACD is bearish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,085
Target price:
Protective stop:
Outlook
This index could be moving within a sideway consolidation zone between 19,381 and 20,236. As long as the upper range of 20,236 is not penetrated, there is higher chance that price could test 18,810. A bearish Stochastic crossover is likely. MACD remains bearish.
Trading Idea.
Sell 20,230 for 19,210 with a stop above 20,300
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,040
Target price:
Protective stop:
Outlook
Price moves within a sideway consolidation range between 12,815 and 13,288. It is currently being supported by the 20EMA, and we could see price testing its upper boundary at 13,260 again. Stochastic is falling but MACD remains bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7736
Target price:
Protective stop:
Outlook
Price broke and closed below the 20EMA on 2 May. A corrective rebound to 7837 is likely as price hit the Fibonacci 38% correction point. Stochastic is near to the oversold zone and MACD could be turning up soon.
Trading Idea
Wait for better trading idea.
