Market News
- Wall Street’s main indexes closed lower on Thursday as investors looked to higher-than-expected inflation and unemployment claims for indications on the health of the U.S. economy and the path for interest rates.
- The closely watched Consumer Price Index rose 0.2% on a monthly basis in September and 2.4% on an annual basis. In a separate report released on Thursday, jobless claims also rose to 258,000 for the week ending Oct. 5, versus an estimate of 230,000.
- Atlanta Federal Reserve Bank President Raphael Bostic on Thursday said he would be “totally comfortable” skipping an interest-rate cut at an upcoming meeting of the U.S. central bank, adding that the “choppiness” in recent data on inflation and employment may warrant leaving rates on hold in November.
Market Views
- Asian stocks were higher on Friday, with Chinese markets sinking in anticipation of more cues on fiscal stimulus, while South Korean shares rose after the Bank of Korea cut interest rates. Hang Seng index advanced 614 points and Nikkei 225 index gained 221 points.
- China’s finance ministry is set to hold a briefing on Saturday, where it will outline fiscal support for the economy. The briefing was announced after investors largely balked at Beijing’s latest round of monetary stimulus, and called for more targeted, fiscal measures.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 42,080
Last: 42,443
Target price: 41,580
Protective stop: 42,200
Outlook
Price rebounded from its previous low support zone. As long as it stay above 42,370, we could see price forming a new high. Stochastic and MACD are bullish.
Trading Idea
Sell 42,080 for 41,580 with a stop above 42,200. Entry was filled on 8 Oct. Stop was triggered on 9 Oct
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,231
Target price:
Protective stop:
Outlook
Price has formed a price high at 23,458. It is currently capped by the falling 20EMA, coinciding with the support-turned-resistance level. MACD has turned bearish. We are likely to see price continuing to move lower.
Trading Idea
Sell 22,200 for 20,330 with a stop above 22,530
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 20,236
Target price:
Protective stop:
Outlook
Price has tested its previous price high resistance zone for a second time. It has to close above this high for more upside ahead. Stochastic and MACD remains bullish. We could see price breaking above this resistance for more upside.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 19,217
Target price:
Protective stop:
Outlook
Price is currently moving along with the rising 20EMA, keeping the bullish price trend intact. Stochastic is rising and MACD remains bullish. We could see price continuing to move higher to its previous price high.
Trading Idea
Buy 19,130 for 19,440 with a stop below 19,000
