Market News
- All three major U.S. stock indexes ended the session sharply higher, as investors looked ahead to crucial economic data due later this week that could sway the Federal Reserve’s interest rate decisions in the coming months.
- U.S. economic indicators released on Tuesday showed dampening consumer sentiment and job openings dropping to their lowest level since March 2021, offering evidence that the central bank’s efforts to rein in inflation by throwing cold water on the economy are having their intended effect.
- Chinese indexes had marked a strong start to the week after Beijing unveiled new measures aimed at supporting local equity markets, most notably halving the stamp duties collect on stock trading.
Market Views
- Asian stocks rose on Wednesday morning, tracking strong cues from Wall Street after weak data pushed up hopes for a less hawkish Fed, with Australian shares leading gains on a softer-than-expected inflation reading. Hang Seng index gained 76 points and Nikkei 225 index advanced 268 points.
- Australia’s ASX 200 rallied over 1% on Wednesday after data showed that consumer price index (CPI) inflation eased more than expected in July. The aggressive rate hikes by the Reserve Bank of Australia over the past year were now bearing fruit, which in turn gives the central bank less impetus to keep raising interest rates.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,869
Target price:
Protective stop:
Outlook
This index rebounded after forming a bottom at 34,018. Price could have a correction before the next rally. Stochastic is rising from the oversold zone but MACD is still bearish.
Trading Idea
Buy at 34,645 for 35,000 with a stop below 34,580
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,573
Target price:
Protective stop:
Outlook
Price has been moving higher after forming a bottom at 17,554. It is testing the Fibonacci 62% correction point. If price unable to penetrate 18,750, we think price is likely to move lower again.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 15,411
Target price:
Protective stop:
Outlook
Price is going to test its declining trendline for a third occasion, which is also near to the support-turned-resistance zone. We think that price may have some rejection at this zone and could retrace to the 20EMA. Stochastic is rising and MACD remains bullish.
Trading Idea
Sell 15,410 for 15,140 with a stop above 15,480
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Short @ 7415
Last: 7492
Target price: 7230
Protective stop: 7470 filled
Outlook
This index rebounded from its previous low support zone. It is likely to test its previous resistance at 7590 as long as it stay above the 20EMA. Stochastic is rising and MACD is bullish.
Trading Idea
Sell 7415 for 7230 with a stop above 7470. Entry and stop orders are filled on 29 August.
