Market News
- Wall Street’s main indexes pounded over 1% on Tuesday as 10-year Treasury yields held their multi-year highs, with investors still wrestling with prospects for a long period of high interest rates and the economic fallout.
- Adding to investor anxiety was the potential of a partial U.S. government shutdown by the weekend, which ratings agency Moody’s warned would harm the country’s credit.
- Investors will focus on Friday’s personal consumption expenditures price index for a fresh view of the inflation picture. This week also brings other data including on durable goods and second-quarter gross domestic product, as well as remarks by Fed policymakers such as Chair Jerome Powell.
Market Views
- Asian stocks were mixed on Wednesday amid persistent fears of rising U.S. interest rates, while Chinese stocks rebounded on positive industrial profits data and promises of more stimulus. Hang Seng index rose 111 points while Nikkei 225 index dropped 97 points.
- Data showed that Chinese industrial profits rebounded sharply in August, helping narrow their declines for the year to date. Sentiment towards China was also somewhat aided by promises of more monetary stimulus from the People’s Bank of China.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,688
Target price:
Protective stop:
Outlook
This index reached its previous low support zone that formed since Jun 23. A hammer was formed at this support zone, hinting that price may rebound to the 20EMA resistance point at 33,920. Stochastic is at the oversold zone. MACD is bearish but could give potential divergence warning.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,593
Target price:
Protective stop:
Outlook
Price reached its lower channel trendline support, coinciding to its previous low support zone. It could rebound to test the 20EMA resistance first. A violation of this support zone will lead to another downward movement. Stochastic is at the oversold zone and MACD remains bearish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,582
Target price:
Protective stop:
Outlook
This index is bearish as it broke below the channel. It could be moving higher to test the 20EMA resistance, and continue its downward movement thereafter. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Sell 14,710 for 14,300 with a stop above 14,790
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7614
Target price:
Protective stop:
Outlook
Price is sitting at the trendline support, coinciding with the resistance-turned-support zone. The 20EMA is near to this support zone as well. Price could rebound from this support to test 7740 again. Stochastic is strong and MACD is bullish.
Trading Idea
Buy 7610 for 7725 with a stop below 7580
