Market News
- U.S. three major indexes slumped as U.S. data sparked economic worries and financial stocks in Europe saw their biggest one-day rout since March 2023. Dow Jones tumbled 494 points, S&P 500 was down 75 points and Nasdaq Composite slid 405 points.
- The Federal Reserve held interest rates steady on Wednesday but opened the door to a cut in September. The Bank of England stole a march on the U.S. central bank on Thursday by lowering borrowing costs by a quarter-point in a narrow 5-4 vote.
- The U.S. Institute for Supply Management’s (ISM) manufacturing PMI dropped to its lowest since November, below a key level that indicates contraction in a sector that accounts for more than 10% of the economy.
Market Views
- Asian stocks fell sharply on Friday, tracking an overnight rout on Wall Street on concerns over slowing economic growth, with a rout in Japanese markets deepening after the Bank of Japan struck a hawkish chord this week. Hang Seng index declined 423 points.
- Japan’s stock markets have hit a six-month low, declining for two straight days, after the Bank of Japan raised benchmark interest rates to their highest level since 2008.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 40,123
Target price:
Protective stop:
Outlook
Price tumbled after being capped by its support-turned-resistance zone. The 20EMA is now falling, hinting at more downside ahead. We are likely to see price rebounding to 40,500 for the next decline. MACD and Stochastic are bearish.
Trading Idea
Sell 40,440 for 39,900 with a stop above 40,540
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,872
Target price:
Protective stop:
Outlook
Price has been capped by its falling 20EMA since June. It further violated its resistance-turned-support zone. We are likely to see price tumbling to 16,180. Both Stochastic and MACD are bearish.
Trading Idea
Buy 17,000 for 18,000 with a stop below 16,800. Entry was filled on 1 Aug and stop was triggered on 2 Aug
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 18,607
Target price:
Protective stop:
Outlook
Price has been tumbling after being capped by its support-turned-resistance zone. It is currently testing its previous low support zone. We could see more downside if price violates this support, else, price could have a corrective rebound to 19,040.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 17,900
Target price:
Protective stop:
Outlook
Price has been falling after being capped by 18,550 since 1 Aug. Both MACD and Stochastic are bearish and moving lower. As price deviates far away from the 20EMA, we could see a corrective rebound to 18,230.
Trading Idea
Wait for better trading idea
