Market News
- Market News
- Wall Street slumped on Thursday, with each of the major averages suffering their biggest daily percentage drop in weeks, as fears intensified that Fed’s battle against inflation using aggressive interest rate hikes could lead to a recession.
- U.S. central bank hiked rates by 50bps on Wednesday as was widely expected, downsizing from the consecutive 75 bps hikes at its prior four meetings, but Fed Chair Jerome Powell warned recent signs of inflation were not enough to convince Fed the battle against rising prices had been won.
- Adding to global recession worries, the Bank of England and the European Central Bank further indicated an extended hiking cycle on Thursday. Most major central banks have followed a rate hike strategy in an attempt to reign in inflation.
Market Views
- Asia-Pacific markets were mixed on Friday morning as recession fears grow. Disappointing U.S. retail sales for November suggested inflation is taking a toll on consumers and raising fears that the Fed’s rate hikes are tipping the economy into a recession. Hang Seng index rose 25 points while Nikkei 225 index dropped 465 points.
- U.S. Commerce Department slapped restrictions on Chinese companies over their efforts to use advanced technologies to help modernize China’s military. That comes just two months after the Biden administration curbed China’s access to advanced semiconductors.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation:
Last: 33,144
Target price:
Protective stop:
Outlook
Price plunged last night after the formation of shooting star and spinning top reversal candlestick patterns. It moved below the 20EMA support. Price is testing the resistance-turned-support zone. If price cannot rebound from this zone, we are likely to see further plunge to 31,865.
Trading Idea
Wait for better trading idea

DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 14,013
Target price:
Protective stop:
Outlook
Price broke and closed below the 20EMA and its previous low support zone last night, confirming the triple top chart pattern. It could rebound to the neckline resistance of 14,150 before its next downward movement. Stochastic is falling and MACD is bearish
Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,333
Target price:
Protective stop:
Outlook
This index broke below the sideway consolidation zone last night with a bearish candle. Price could head lower to 10,600 in the coming week. Stochastic is near to the oversold zone and MACD has turned bearish.
Trading Idea
Wait for better trading idea.

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3889
Target price:
Protective stop:
Outlook
Price broke and closed below the resistance-turned-support level of 3913 last night. It is likely to retest this level again before its next downward movement. Stochastic is near to the oversold zone and MACD is bearish.
Trading Idea
Wait for better trading idea.
