Market News
- U.S. stocks were lower after the close on Thursday, as losses in technology shares seeing a sharp reversal as markets turned broadly risk-averse ahead of more cues on monetary policy from the Jackson Hole Symposium.
- While positive results from chipmaker Nvidia Corp offered some support to regional tech stocks this week, they were largely offset by fears of more hawkish signals from the Fed, specifically Chair Powell, who is set to speak at the Jackson Hole Symposium later in the day.
- U.S. Treasury yields trend at multi-decade highs, as markets feared potentially hawkish signals on U.S. monetary policy from Powell later in the day. Analysts have warned that Powell could flag an era of higher baseline interest rates, which bodes poorly for risk-driven markets as monetary conditions tighten.
Market Views
- Asia-Pacific markets plunged on Friday morning as investors prepared for signals on U.S. monetary policy from central bankers’ comments at the Jackson Hole meeting on Friday, including a speech by U.S. Fed chair Powell. Hang Seng index dropped 196 points and Nikkei 225 index slid 623 points.
- China banned the import of seafood from Japan, citing concerns over radioactive contamination as Japan began releasing contaminated water from the Fukushima plant into the Pacific Ocean. China is Japan’s top seafood export market, although marine exports make up less than 1% of Japan’s total exports.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,147
Target price:
Protective stop:
Outlook
This index broke and closed below its recent price low support after being capped by the 20EMA resistance point. We could see price retesting 34,240 zone before the next decline. Stochastic is at the oversold zone and MACD remains bearish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,009
Target price:
Protective stop:
Outlook
Price rebounded after forming a bottom at 17,554. Stochastic is rising from the oversold region and there is a bullish MACD crossover. It has to penetrate the 20EMA for more upside, else, we are likely to see price testing its low again.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,794
Target price:
Protective stop:
Outlook
The price rally come to the end after being capped by the support-turned-resistance zone. A huge bearish engulfing candlestick pattern was formed. We are likely to see price testing its low at 14,550 again.
Trading Idea
Sell 15,070 for 14,560 with a stop above 15,200
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7327
Target price:
Protective stop:
Outlook
This index rebounded after being supported by its previous low support zone. Stochastic is moving higher from the oversold zone and a bullish MACD crossover is likely. We are likely to see price being capped by the 20EMA resistance point and moving lower again.
Trading Idea
Sell 7415 for 7230 with a stop above 7470
