Market News
- U.S. markets were closed for the Independence Day holiday, but U.S. futures were all lower ahead of Wednesday’s session. Traders will be watching closely for minutes from Fed’s June meeting, after Chairman Powell said last month to expect more rate hikes ahead.
- Data on Monday from the Institute of Supply Management showed U.S. manufacturing activity slumped in June to levels last seen during the initial wave of the COVID-19 pandemic in May 2020. Purchasing managers surveys showed a similar factory downturn in the euro zone.
- Euro zone government debt was steady, with Germany’s two-year Schatz yield, which tracks interest rate expectations, drifting around the 3.32% level, around its highest since early March, just before a U.S. regional banking crisis drove a flight into safe havens. Bond yields rise as prices fall.
Market Views
- Asian stocks fell on Wednesday, with Chinese markets under pressure from weak economic data and rumblings of a renewed trade war with the U.S., while anticipation of more cues from the U.S. Fed also kept risk appetite low. Hang Seng index fell 261 points and Nikkei 225 index dropped 95 points.
- China’s service sector activity remained in positive territory for a sixth straight month as the Caixin services purchasing managers index for June came in at 53.9, a slower rate of expansion than the 57.1 recorded in May.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,359
Target price:
Protective stop:
Outlook
Price started to retrace after trading near to its previous price high resistance zone. We could see price moving lower to the 20EMA at 34,020. Stochastic is weak. MACD remains bullish at the moment.
Trading Idea
Wait for better trading idea.

Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,089
Target price:
Protective stop:
Outlook
Price was unable to penetrate its support-turned-resistance zone yesterday. A bearish candle was seen today. It moved below the 20EMA as well. Stochastic remains weak and MACD remains bearish. We are likely to see price moving lower to 18,015.
Trading Idea.
Sell 19,300 for 18,150 with a stop above 19,480.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 15,185
Target price:
Protective stop:
Outlook
Price created a price high at 15,282 on 16 June. It has to penetrate this high for further upside. Both MACD and Stochastic could be giving potential divergence warning. We are likely to see price moving lower to 14,680 if it violates the 20EMA.
Trading Idea.
Sell 15,180 for 14,700 with a stop above 15,300.

FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7481
Target price:
Protective stop:
Outlook
The price rebound was capped by the falling 20EMA that suggest for a bearish downtrend. It has to penetrate above the 20EMA for more upside, else, we are likely to see price testing its previous low support zone at 7440. Stochastic is weak and MACD remains bearish.
Trading Idea
Wait for better trading idea.
