Market News
- All three U.S. major indices closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. Dow Jones rose 158 points, S&P 500 was up 12 points and Nasdaq Composite gained 27 points.
- The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming “into view”.
- U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Market Views
- Asia-Pacific markets climbed Friday, led by Hong Kong, as Wall Street continued to rally after the U.S. Fed held rates and laid out a roadmap for cuts in 2024 and beyond. Hang Seng index surged 491 points and Nikkei 225 index gained 286 points.
- China reported that industrial output in November expanded at the fastest pace since February last year, but retail sales growth missed expectations — a sign the world’s second-largest economy is still going through a patchy recovery.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 37,303
Target price:
Protective stop:
Outlook
Price has been rallying without a significant correction since 30 Oct, showing the strong bullish uptrend. As long as price stay above the 20EMA, we see price continuing its upward strength to move higher. Stochastic remains strong and bullish at the overbought zone. MACD is bullish too.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,806
Target price:
Protective stop:
Outlook
This index is currently moving within a falling channel. Price reached its support-turned-resistance level that coincides with the 20EMA at 16,860. It need to penetrate and close above this level for more upside, else, we are likely to see price plunging lower again.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 16,549
Target price:
Protective stop:
Outlook
Price hit its resistance zone and closed with a spinning top candlestick pattern yesterday, hinting at potential correction ahead. A close below 16,400 will confirm the reversal candle and a potential correction to 15,930. Stochastic is at the overbought zone and MACD is giving potential divergence warning.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 16,773
Target price:
Protective stop:
Outlook
Price has moved and closed below the 20EMA which has now turned to be a resistance. There is divergence warning given from the Stochastic that hints at potential reversal ahead. MACD has turned bearish. We are likely to see price moving lower to 16,480.
Trading Idea
Sell 16,780 for 16,500 with a stop above 16,830
