Market News
- U.S. stocks closed little changed on Thursday as news of hotter-than-expected inflation and signs of labor market strength dampened hopes for early interest rate cuts by Fed this year, but a fall in Treasury yields kept declines in check.
- The U.S. Labor Department reported that consumer prices rose more than expected in December, with Americans paying more for shelter and healthcare. A separate report showed the number of people filing new claims for unemployment benefits unexpectedly fell last week to 202,000.
- Comments from some Fed officials have pushed back on potential rate cuts. Cleveland Fed President and Richmond Fed President said consumer price data for December did little to assure them inflation is now on a steady track back to the central bank’s 2% target, with more information needed before any decision to begin reducing rates.
Market Views
- Asian stocks were higher on Friday as investors digested mixed inflation readings from the U.S. and China, while Japan’s Nikkei 225 index continued to blaze past its global peers. Hang Seng index rose 17 points and Nikkei 225 index jumped 409 points.
- Oil prices rose after Britain and the United States carried out military strikes against targets in Houthi-controlled areas of Yemen, U.S. officials said, as tensions in the Red Sea mounted.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 37,690
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support zone. It could be forming a potential pennant pattern and the 20EMA is acting as support. Both MACD and Stochastic are bullish. This index could go higher if it breakout the pennant pattern.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,276
Target price:
Protective stop:
Outlook
Price broke and closed above the 20EMA, hinting at possible upside ahead. Wait for price to penetrate 16,370 for further upside towards first resistance at 16,740. MACD has turned bullish and Stochastic is rising too.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 16,802
Target price:
Protective stop:
Outlook
Price rebounded after testing the resistance-turned-support zone. The 20EMA is still rising, hinting at potential uptrend ahead. We could see price moving higher if it further penetrate 16,850. Both MACD and Stochastic are still bullish.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Long @ 15,686
Last: 16,650
Target price: 16,750
Protective stop: 16,650 triggered
Outlook
Price managed to stay above the resistance-turned-support zone. As long as this zone holds, we see price moving higher to 16,790 or even higher at 16,950. MACD is still bullish and a bullish Stochastic crossover is likely.
Trading Idea
Buy 16,585 for 16,750 with a stop below 16,540. Entry and stop orders were filled on 11 Jan.
