Market News
- Stocks on Wall Street closed mixed on Tuesday, pressured by worries about U.S. lawmakers opposed to a deal to raise the $31.4 trillion debt ceiling, but supported by another surge in Nvidia shares that briefly lifted the chipmaker into the rare club of companies valued at $1 trillion.
- On Tuesday, Republican House of Representatives Speaker McCarthy said the deal should be “easy” for Republicans to vote for and was likely to pass, but some right-wing Republicans said they opposed the bipartisan deal.
- Treasuries rallied after the initial deal was struck, on the expectation a U.S. default would be averted, but the market remains skittish as once authorised to borrow the Treasury is likely to issue lots of debt to replenish its coffers.
Market Views
- Asian markets slid toward a second month of losses in a row on Wednesday as weak Chinese factory activity fed growing doubts about the post-pandemic recovery in the world’s second biggest economy. Hang Seng index slumped 417 points and Nikkei 225 index dropped 435 points.
- Data showed Chinese manufacturing activity contracted faster than expected this month on weakening demand, with the official manufacturing purchasing managers’ index down to 48.2 against a forecast of 49.4.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,921
Target price:
Protective stop:
Outlook
The short rebound came to an end after the rally was capped by the 20EMA resistance point. We are likely to see price testing its previous low at 32,562. Stochastic remains weak and MACD remains bearish with both lines are heading lower.
Trading Idea
Sell 33,180 for 32,500 with a stop above 33,400.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,159
Target price:
Protective stop:
Outlook
Price continued its decline after breaking down from a sideway consolidation zone. We are likely to see price falling to the Fibonacci 62% correction point at 17,700 in the next couple of days. Stochastic is weak and MACD remains bearish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 13,960
Last: 14,336
Target price: 13,250
Protective stop: 14,000 Triggered
Outlook
Price could have reached a possible price top at 14,528. A Doji candlestick pattern was formed last night. We are likely to see price retracing to the 20EMA at 13,800. Stochastic is at the overbought zone. MACD remains bullish but a bearish crossover is likely.
Trading Idea
Sell 13,960 for 13,250 with a stop above 14,000. Entry and stop were triggered on 29 May.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7503
Target price:
Protective stop:
Outlook
Price continues its downward momentum after as it breaks below its recent price low of 7552. We are likely to see price diving to 7202. Stochastic is very weak and MACD remains bearish with both its lines moving lower.
Trading Idea
Wait for better trading idea.
