Market News
U.S. stocks rebounded on Thursday as investors looked to a spate of high-profile earnings and the Friday’s employment report a day after Fed quashed lingering bets that interest rate cuts could begin as early as March.
On Wednesday, the Federal Open Markets Committee (FOMC) left its policy rate unchanged as expected. At his press conference, Fed Chair Jerome Powell called a March rate cut “unlikely,” resetting market expectations of a dovish Fed pivot in the first quarter, and prompting a steep sell-off.
A raft of economic data showed rising productivity helping to cap labor costs, while an increase in announced layoffs and weekly jobless claims provided further evidence of softening in the labor market, which is viewed by the Fed as a precondition to assuring a sustainable downward path for inflation.
Market Views
Asian shares were buoyed by a late bounce in U.S. tech on Friday as results from Meta and Amazon beat expectations, while investors are bracing for U.S. jobs figures, which could hasten bets for rate cuts if they come in below forecast. Hang Seng index rose 37 points and Nikkei 225 index gained 163 points.
A downside miss in payrolls could bring a March rate cut back into play. Markets still see a chance of a March move at about 40%, while the probability for a May move stood at 34 basis points – implying a 100% probability of 25 basis points and some chance of a 50 basis-point easing.
Dow Jones Index(CFD Symbol: US30)
Trend:
Recommendation: Long @ 38,250
Last: 38,519
Target price: 38,490
Protective stop: 38,130 filled
OutlookPrice rebounded strongly after retracing to the 38,110 support zone. It is currently testing its all time high resistance zone. This index could move in the sideway zone and retrace to 38,110 if it unable to surpass the recent price high.
Trading IdeaBuy 38,250 for 38,490 with a stop below 38,130. Entry and stop were filled on 1 Feb
Hang Seng Index(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 15,670
Last: 15,572
Target price: 16,700
Protective stop: 15,300
OutlookPrice could be falling a potential bearish flag pattern. It has to stay above 15,430 for more upside ahead. MACD is bearish with both of its lines below the zero line. Stochastic is rising but is weak.
Trading IdeaBuy 15,670 for 16,700 with a stop below 15,300. Entry was filled on 30 Jan.
Nasdaq 100 Index(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 17,530
Last: 17,520
Target price: 17,100 filled
Protective stop: 17,660
OutlookThis index remains bullish as price managed to stay above the daily 20EMA support. It could be forming a potential bullish flag pattern. Watch out for the price reaction at 17,620 resistance zone. Price has to penetrate the resistance for more upside.
Trading IdeaSell 17,530 for 17,100 with a stop above 17,660. Entry was filled on 29 Jan. Target was filled on 31 Jan
DAX Index(CFD Symbol: GER40)Trend:
Recommendation:
Last: 16,978
Target price:
Protective stop:
OutlookPrice is testing its previous high resistance zone after rebounding from the resistance-turned-support zone. We see price moving higher if it further penetrate the resistance zone of 17,000. MACD is still bullish and the Stochastic is rising.
Trading IdeaWait for better trading idea
