Market News
Overnight in the U.S., all three major indexes climbed for a second straight session on Tuesday as a strong batch of corporate earnings assuaged concerns over higher rates. Dow Jones gained 263 points. S&P 500 was up 59 points and Nasdaq Composite advanced 245 points.
Tesla kicked off the earnings season for U.S. tech megacaps, announcing the launch of new electric vehicle models that sent its shares up 12.5% in extended trading. The gains came despite Tesla releasing first-quarter results that missed expectations.
The drastic shift has elevated Treasury yields and lifted the dollar in the past few weeks but on Wednesday they were subdued following data that showed U.S. business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly even as input prices rose sharply.
Market Views
Asian stocks rose sharply on Wednesday led by tech stocks as investors’ focus shifts to earnings from U.S. tech bellwethers this week, while the yen remained mired near 34-year lows, keeping traders wary of intervention from Japanese authorities. Hang Seng index gained 329 points and Nikkei 225 index surged 865 points.
Japanese Finance Minister Shunichi Suzuki issued on Tuesday the strongest warning to date on the chances of intervention, saying last week’s meeting with U.S. and South Korean counterparts had laid the groundwork for Tokyo to act against excessive yen moves.
Dow Jones Index(CFD Symbol: US30)
Trend:
Recommendation:
Last: 38,555
Target price:
Protective stop:
OutlookPrice rebounded after forming a bottom at 37,228. It is currently testing its support-turned-resistance level. Price is trading far above the 20EMA. It could have a pullback towards its 20EMA before the next rally. MACD could have a bearish crossover soon and Stochastic is at the overbought zone.
Trading IdeaSell 38,550 for 38,320 with a stop above 38,600
Hang Seng Index(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,180
Target price:
Protective stop:
OutlookPrice rebounded from its previous low support zone. It is consolidating within a sideway zone and we are likely to see price breaking out this zone to move higher. Stochastic is rising and MACD has turned bullish.
Trading IdeaWait for better trading idea
Nasdaq 100 Index(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 17,594
Target price:
Protective stop:
OutlookPrice has been rebounding after forming a bottom at 16,949. The 20EMA is rising, hinting at potential upside ahead. MACD remains bullish and Stochastic is the overbought zone. We are likely to see price continuing to move higher.
Trading IdeaWait for better trading idea
DAX Index(CFD Symbol: GER40)Trend:
Recommendation:
Last: 18,222
Target price:
Protective stop:
OutlookPrice rebounded from its support zone. It moved and closed above the rising 20EMA, we are likely to see price testing 18,360 resistance zone soon. MACD remains bullish and Stochastic is at the overbought zone.
Trading IdeaWait for better trading idea
