Market News
- S&P 500 and Dow Jones lost ground and closed lower on Tuesday, pressured by a modest rise in Treasury yields as investors assessed the timing and size of any Fed interest rate cuts in 2024 ahead of inflation data this week.
- Expectations the central bank could begin cutting rates as soon as March have been slowly decreasing, with CME’s FedWatch Tool showing a 65.7% chance for a cut of at least 25 basis points (bps) for the month, down from 79% a week ago.
- Atlanta Fed President Raphael Bostic on Monday stressed the need to keep monetary policy tight, while Fed Governor Michelle Bowman retreated from her persistently hawkish view and signaled a willingness to support eventual rate cuts as inflation eases.
Market Views
- Asian stocks were mixed on Wednesday as investors remained on edge over U.S. inflation and early interest rate cuts. Nikkei 225 jumped to a 34-year high amid growing expectations of a delay in the Bank of Japan’s plans to tighten policy, while Hang Seng index slid 73 points.
- The biggest source of support for the Nikkei was growing expectations that the BOJ will have to delay plans to end its ultra-dovish policy, following a devastating earthquake in central Japan which killed hundreds of people and caused widespread destruction in the region.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 37,469
Target price:
Protective stop:
Outlook
Price is likely to range between 37,210 and 37,680 until either end is violated for directional movement. We remain our bearish bias on Dow Jones unless it further penetrate 37,680. MACD is still bearish with both of its lines below the zero line.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,078
Target price:
Protective stop:
Outlook
Price broke below a bearish flag pattern and is moving lower to our expected target of 16,000. It could have a corrective rebound to 20EMA when price retest its previous low support at 15,990. MACD remains bearish and Stochastic is at the oversold zone.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 16,655
Target price:
Protective stop:
Outlook
Price rebounded after being supported by the Fibonacci 62% correction point, coinciding with the resistance-turned-support zone. Both MACD and Stochastic are bullish. We are likely to see price retracing to the 20EMA before the next rally.
Trading Idea
Buy 16,550 for 16,780 with a stop below 16,450
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 16,654
Target price:
Protective stop:
Outlook
This index rebounded and closed back above the resistance-turned-support zone. The 20EMA is acting as support at the moment. Both MACD and Stochastic are bullish too.
Trading Idea
Buy 16,585 for 16,750 with a stop below 16,540
