Market News
- U.S. stocks closed up on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve’s policy meet next week. Dow Jones was up 10 points, S&P 500 rose 10 points and Nasdaq Composite gained 46 points.
- Inflation data is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are likely to have remained elevated, and the Fed is widely expected to hold interest rates.
- Higher rates and overhangs from this year’s banking crisis will drastically slow economic growth for the biggest global economies, the World Bank said Tuesday. The U.S. economy is projected to grow 1.1%, and is expected to decelerate in 2024 to 0.8% as high interest rates further weigh on growth.
Market Views
- Asia-Pacific markets were mixed as the region looks to China’s May trade data and a speech from Reserve Bank of Australia governor Philip Lowe, a day after Australia’s central bank defied expectations and raised its benchmark interest rate to its highest in 11 years. Hang Seng index jumped 188 points while Nikkei 225 index dropped 233 points.
China’s trade data missed forecasts as its exports tumbled 7.5% year-on-year, sharply lower than the 0.4% fall expected, while imports saw a smaller fall of 4.5% year-on-year, compared to an 8% fall that was forecast
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,591
Target price:
Protective stop:
Outlook
The index rebounded strongly three days ago. A Doji candlestick was formed yesterday after being supported by the 20EMA. We could see price rebounding to retest its previous price high resistance zone at 34,120 if it stay above the 20EMA. Both Stochastic and MACD are rising.
Trading Idea
Buy 33,550 for 34,120 with a stop below 33,290.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,277
Target price:
Protective stop:
Outlook
Price rebounded after forming a bullish engulfing reversal candlestick pattern on 1 June. It reached the Fibonacci 50% correction point, coinciding with the support-turned-resistance level. We should see potential selling pressure at this level, which could result in a price correction to 18,740
Trading Idea.
Sell 19,280 for 18,750 with a stop above 19,520.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,555
Target price:
Protective stop:
Outlook
Price created a temporary price top at 14,662 two days ago. It is currently moving within a tight consolidation range. It has to further move above its recent price high for further upside. A move below 14,480 will hint for a correction to 14,090. Stochastic is at the overbought zone and there is a bearish MACD crossover.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7637
Target price:
Protective stop:
Outlook
Price is currently testing the 20EMA resistance point at 7646. It is also near to the Fibonacci 50% correction point that coincides with the support-turned-resistance level at 7681. It has to breakthrough this resistance for more upside. Stochastic is rising from the oversold zone but MACD remains bearish.
Trading Idea
Wait for better trading idea.
