Market News
- U.S. stocks were higher after the close on Tuesday, as gains in the Technology, Financials and Consumer Goods sectors led shares higher. Dow Jones rose 126 points, S&P 500 was up 25 points and Nasdaq Composite surged 122 points.
- The producer price index reading for April came in at 0.5%, above the 0.3% that economists polled by Dow Jones had expected. The initial market reaction was negative but stocks subsequently rose as March wholesale prices were revised down to show a 0.1% decline.
- Australia’s government announced its annual budget late Tuesday, with measures aimed at easing cost of living, building more homes, and strengthening its healthcare system. The government forecast a second surplus in 2023–24, which would be the first time a government has delivered back‑to‑back surpluses in nearly two decades.
Market Views
- Asia-Pacific markets were mixed on Wednesday morning, tracking Wall Street gains overnight that saw the Nasdaq hit a fresh record closing high despite strong inflation data. Hang Seng index fell 41 points while Nikkei 225 index rose 44 points.
- The Federal Reserve is unlikely to cut rates this year, according to Verdence Capital Advisors’ Chief Investment Officer Megan Horneman. She believes the U.S. central bank will be forced to keep rates on hold for the remainder of the year as inflation persists.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 39,569
Target price:
Protective stop:
Outlook
Price managed to stay above the resistance-turned-support zone at 39,400. The rising 20EMA is also acting as support. MACD remains bullish and Stochastic is rising. We are likely to see price moving higher to 39,940 if it stay above 39,400.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,071
Target price:
Protective stop:
Outlook
Price has been moving higher after rebounding from 18,250 support zone. It has further penetrated 18,900 resistance zone. As long as it stay above 18,900, we see price continuing to move higher. MACD remains bullish and Stochastic is at the overbought zone.
Trading Idea
Buy 19,030 for 19,780 with a stop below 18,770
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 18,130
Last: 18,317
Target price: 17,890
Protective stop: 18,190 triggered
Outlook
Price was capped by 18,160 resistance zone. It has to penetrate this resistance for more upside, else, we could see price retracing to 17,900 zone. Stochastic is relatively weak and there is potential divergence warning given from MACD.
Trading Idea
Sell 18,130 for 17,890 with a stop above 18,190. Entry and stop were filled on 10 May
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,781
Target price:
Protective stop:
Outlook
Price has been moving higher since 2 May. The 20EMA is rising and is acting as support. MACD remains bullish and a bullish crossover is likely. Stochastic is rising too. We could see price moving higher as long as price stay above the 20EMA.
Trading Idea
Wait for better trading idea
