Market News
Wall Street stocks were mixed in choppy trading on Tuesday as Treasury yields climbed, with investors weighing the likely path of interest rates in a resilient U.S. economy with persistent inflation. Dow Jones rose 63 points while S&P was down 10 points and Nasdaq Composite fell 19 points.
Federal Reserve Chair Jerome Powell said on Tuesday recent inflation data has not given policymakers enough confidence to ease credit soon, noting that the U.S. central bank may need to keep rates higher for longer than previously thought.
A report on Monday showed retail sales grew more than expected in March, a sign of U.S. economic resilience that helped push benchmark U.S. 10-year Treasury yields to five-month highs on Tuesday.
Market Views
Asian shares slipped on Wednesday as the world’s most powerful central banker had a change of heart on U.S. rate cuts this year, pushing Treasury yields to new five-month highs and the dollar towering against other currencies. Hang Seng index dropped 10 points and Nikkei 225 index slumped 148 points.
Geopolitical tensions in the Middle East are still running high. Israel vowed to respond to Iran’s weekend attack despite international calls for restraint, although its war cabinet put off a meeting to decide on its response until Wednesday.
Dow Jones Index(CFD Symbol: US30)
Trend:
Recommendation:
Last: 37,866
Target price:
Protective stop:
OutlookPrice rebounded from its resistance-turned-support zone. It has been moving far below from its daily 20EMA, and we could see price rebounding to 38,460 before the next decline. MACD remains bearish and Stochastic is at the oversold zone.
Trading IdeaBuy 37,660 for 38,250 with a stop below 37,540
Hang Seng Index(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,215
Target price:
Protective stop:
OutlookPrice has been declining after testing its resistance zone for a third time. It has been forming lower highs and lower lows, hinting at potential downside ahead. Stochastic is at the oversold zone and MACD remains bearish. Price could have a corrective rebound to 16,600 for a next decline.
Trading IdeaSell 16,600 for 16,220 with a stop above 16,670
Nasdaq 100 Index(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 17,748
Target price:
Protective stop:
OutlookPrice has been forming lower highs and lower lows, hinting at potential downside ahead. It was capped by its support-turned-resistance zone. Stochastic is at the oversold zone and MACD remains bearish. We are likely to see price continuing to move lower.
Trading IdeaSell 17,790 for 17,635 with a stop above 17,830
DAX Index(CFD Symbol: GER40)Trend:
Recommendation: Long @ 18,045
Last: 17,781
Target price: 18,220
Protective stop: 18,000 triggered
OutlookPrice is currently testing its resistance-turned-support zone. We are likely to see more downside if price violates this zone, else, we could see price to have a corrective rebound to 18,100. MACD remains bearish and Stochastic is at the oversold zone.
Trading IdeaBuy 18,045 for 18,220 with a stop below 18,000. Entry and stop orders were filled on 12 Apr
