Market News
- Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally. Interest rate sensitive megacaps providing much of the upside lift as benchmark Treasury yields held steady, comfortably below their recent spike to 5%.
- On Friday, the Commerce Department is expected to follow with its closely watched Personal Consumption Expenditures report, which analysts expect will provide further evidence that inflation is slowly cooling down toward the Federal Reserve’s average annual 2% target rate.
- Fed Chair Jerome Powell is set to speak at the Moynihan Lecture in Social Science and Public Policy in Washington, D.C., later in the day. Powell had last week reiterated the prospect of at least one more rate hike this year, and that rates will remain higher for longer.
Market Views
- China led Asia’s stock markets higher on Wednesday as investors cheered the approval of a trillion-yuan sovereign bond issue as a harbinger of stimulus. Hang Seng index rose 200 points and Nikkei 225 index gained 361 points.
- A bulk of the issuance will be directed towards infrastructure spending, particularly rebuilding disaster-hit areas and bolstering relief capabilities. Construction and utility stocks were the best performers on Chinese indexes, following news of the issuance.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,190
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support zone. It could have a correction first before continuing to move higher. Stochastic is rising from the oversold zone. MACD is bearish but it is moving higher.
Trading Idea
Buy 33,030 for 33,470 with a stop below 33,840
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,210
Target price:
Protective stop:
Outlook
This index is currently moving within a rectangle sideway consolidation zone. A big directional movement will be seen once either ends is violated. Price will be moving higher if it move above the 20EMA. Stochastic is falling and MACD remains bearish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,687
Target price:
Protective stop:
Outlook
Price was rejected by its support-turned-resistance zone. It could have a correction first before moving higher to 14,920. Stochastic is turning down but MACD has turned bullish.
Trading Idea
Buy 14,600 for 14,820 with a stop below 14,540
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 14,880
Target price:
Protective stop:
Outlook
A hammer reversal candlestick pattern was formed two days ago after forming a low at 14,627. Price is likely to test the 20EMA at 15,130. Stochastic could be turning up but MACD remains bearish.
Trading Idea
Wait for better trading idea
