Market News
- U.S. stock index futures steadied in evening deals on Thursday as Wall Street was slapped with profit-taking even as inflation showed signs of cooling, with focus now turning to the second quarter earnings season.
- Consumer price index inflation read softer than expected for June, which saw investors ramp up bets that the Federal Reserve will begin cutting interest rates from September. Headline CPI grew a slower-than-expected 3% year-on-year in June, while core CPI grew 3.3%, also less than expected.
- Early Friday, the yen also suddenly strengthened against the dollar after the U.S. inflation data release, prompting analysts and traders to suspect a possible intervention from the country’s ministry of finance.
Market Views
- Asia Pacific markets were mixed on Friday, with technology-heavy indexes seeing steep losses as the sector was slammed by profit-taking even as soft U.S. inflation data ramped up optimism over interest rate cuts. Hang Seng index advanced 316 points while Nikkei 225 index slumped 835 points.
- Tech-heavy indexes in Asia, which had mostly outpaced their regional peers in recent weeks, clocked the heaviest losses on Friday. The sector saw a heavy degree of profit-taking after hype over AI sparked a major melt-up in valuations this year.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 39,791
Target price:
Protective stop:
Outlook
This index managed to penetrate above its resistance zone at 39,660, hinting at increased upward momentum. The 20EMA is rising, hinting at potential upside too. We are likely to see price retracting to 39,660 and continuing its rally.
Trading Idea
Buy 39,670 for 39,850 with a stop below 39,570.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,192
Target price:
Protective stop:
Outlook
Price rebounded from its resistance-turned-support zone. It is forming higher highs as it is attempting to penetrate its recent price high. MACD is giving potential divergence warning and is rising. We are likely to see price continuing to move higher.
Trading Idea
Buy 18,150 for 18,680 with a stop below 17,860
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 20,484
Last: 20,205
Target price: 20,360
Protective stop: 20,560 triggered
Outlook
Price has been declining after forming a price top at 20,666. We are likely to see price rebounding to 20,510 before the next decline. Stochastic is weak and MACD remains bearish.
Trading Idea
Sell now 20,484 for 20,360 with a stop above 20,560. Entry and stop order were filled on 10 July
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,543
Target price:
Protective stop:
Outlook
Price has been moving higher after being supported by its support zone. It is currently consolidating within a potential pennant continuation pattern. We are likely to see price breaking out the pennant to move higher.
Trading Idea
Buy 18,520 for 18,640 with a stop below 18,470
