Market News
- Wall Street lost ground on Tuesday, with risk-off sentiment weighing as the U.S. Fed convened for its much-anticipated two-day monetary policy meeting. Dow Jones slid 106 points, S&P 500 was down 9 points and Nasdaq Composite lost 32 points.
- Financial markets have priced in an all-but-certain 99% probability that the central bank will leave its key Fed funds target rate at 5.25%-5.00% on Wednesday, and a growing 70.9% likelihood of standing pat at its next meeting in November, according to CME’s FedWatch tool.
- The Westpac/Melbourne Institute Leading Index- an indicator of future Australian economic growth- read 0% for August, heralding continued weakness in the Australian economy as it grapples with high interest rates and slowing Chinese demand.
Market Views
- Asian stocks fell on Wednesday morning with markets remaining broadly risk-off before a closely-watched interest rate decision from Fed later in the day, while weak economic readings from Japan also weighed. Hang Seng index dropped 134 points and Nikkei 225 index fell 185 points.
- Japan reported a data showed that the country’s exports and imports shrank less than expected in August. But Japan’s trade deficit widened substantially more than expected, hitting a three-month low on weakness in China, which is one of the country’s biggest export destinations.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,478
Target price:
Protective stop:
Outlook
This index is currently consolidating within a triangle pattern. It is capped by the falling 20EMA resistance point. We are likely to see price continuing the decline to its lower trendline support. Stochastic remains weak and MACD is bearish.
Trading Idea
Sell 34,870 for 34,300 with a stop above 34,620
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,861
Target price:
Protective stop:
Outlook
Price is moving within a sideway consolidation zone. It was capped by the falling 20EMA. Stochastic is moving lower and a bearish crossover is likely. MACD remains bearish. We are likely to see price breaking down the sideway zone to move lower.
Trading Idea
Sell 17,960 for 17,420 with a stop above 18,100
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 15,162
Target price:
Protective stop:
Outlook
Price is moving within a falling channel. It is capped by its falling 20EMA resistance point. It is likely to move lower to its lower trendline support in the next few hours. Stochastic is falling but MACD remains bearish.
Trading Idea
Wait for better trading idea
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7637
Target price:
Protective stop:
Outlook
Price broke and closed above the declining trendline on 14 Sept. It is going to retest this trendline which has now become a support in the next few hours. If price can hold above 7585, it is likely to rebound towards 7910. Stochastic is strong and MACD is bullish.
Trading Idea
Wait for better trading idea
