Market News
- U.S. stocks closed little changed on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. Amazon shares surged after the closing bell as its forecast third-quarter revenue above Wall Street expectations.
- The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch’s downgrade of the top-tier U.S. credit rating. In late afternoon trade, the 10-year yield had dipped below 4.194.
- A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Market Views
- Asian stocks were higher on Friday morning as traders hunkered down before key labor data due later in the day, while Chinese shares rose on more promises of stimulus from the government. Hang Seng index gained 191 points and Nikkei 225 index rose 22 points.
- China’s top economic committees said in a joint statement on Friday that the government will unlock more measures to boost consumer spending and improve local liquidity. But officials once again offered no major details on the planned stimulus, which saw Chinese markets trim a bulk of their earlier gains.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 35,480
Last: 35,275
Target price: 34,820
Protective stop: 35,700
Outlook
This index could have formed a potential double top chart pattern. It is currently testing the lower support level. The price trend is likely to change once price closes below 35,188. Stochastic is at the overbought zone but MACD remains bullish.
Trading Idea
Sell 35,480 for 34,820 with a stop above 35,700. Entry was filled on 28 July.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,581
Target price:
Protective stop:
Outlook
A bearish engulfing candlestick pattern was formed on 1 August after being capped by its previous price high resistance level. We are likely to see price continuing its downward movement to the lower rising trendline support.
Trading Idea
Sell 19,590 for 18,540 with a stop above 20,000
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 15,430
Target price:
Protective stop:
Outlook
Price could have consolidating within a pennant chart pattern. It is currently trading at its lower boundary and we could see price moving to its upper boundary again. It has to breakout the pennant pattern for a directional movement. Stochastic is falling but MACD remains bullish.
Trading Idea
Wait for better trading idea
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7535
Target price:
Protective stop:
Outlook
Price had a sharp decline after breaking out from a flag pattern. It tested the Fibonacci 62% correction point and formed a long legged doji yesterday. Price could have a rebound if it stay above 7415. Stochastic is falling but MACD remains bullish.
Trading Idea
Buy 7486 for 7670 with a stop below 7415
