Market News
U.S. stocks closed higher on Thursday, with tech-related momentum stocks leading the charge, as fresh economic data rekindled hopes that inflation remains in a cooling trend. Dow Jones fell 2 points, S&P 500 was up 38 points and Nasdaq Composite rose 271 points.
U.S. producer prices increased by slightly less than expected in March, with PPI rising 0.2% last month. Economists had expected the PPI to gain 0.3%. The data come just a day after consumer inflation data for March rose more than expected, denting investor optimism for a Fed rate cut as soon as June.
On Wednesday, hotter-than-expected CPI data sent stocks sharply lower and benchmark Treasury yields to their highest level since November. The report doused hopes that the central bank could implement as many as three rate cuts before year-end, possibly starting as soon as its June policy meeting.
Market Views
Asia-Pacific markets were mixed on Friday after an inflation-fueled selloff in the previous session, with investor assessing economic data from Singapore and South Korea while awaiting China trade numbers. Hang Seng index slipped 280 points while Nikkei 225 index rose 128 points.
China’s trade data for March will be released later in the day, with exports forecast to fall 2.3% year on year by economists polled by Reuters. This follows a weaker-than-expected rise in the country’s inflation on Thursday.
Dow Jones Index(CFD Symbol: US30)
Trend:
Recommendation:
Last: 38,494
Target price:
Protective stop:
OutlookPrice rebounded from its previous low support zone but was capped by its previous price high resistance zone. It has to penetrate 38,570 for more upside towards 38,900. MACD remains bearish and Stochastic is near to its overbought region.
Trading IdeaWait for better trading idea
Hang Seng Index(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,773
Target price:
Protective stop:
OutlookPrice was capped by 17,160 resistance zone for a third occasion. The 20EMA is falling, hinting at more downside ahead. MACD remains bearish and Stochastic is moving lower. We are likely to see price continuing to move lower.
Trading IdeaSell 16,950 for 16,500 with a stop above 17,050
Nasdaq 100 Index(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 18,100
Last: 18,309
Target price: 17,870
Protective stop: 18,130 triggered
OutlookPrice rebounded from its previous low support zone and is going to test its previous price high resistance at 18,461. It is likely to moving within this range until either end is broken. MACD remains bullish and Stochastic is moving higher.
Trading IdeaSell 18,100 for 17,870 with a stop above 18,130. Entry and stop orders were filled on 5 Apr
DAX Index(CFD Symbol: GER40)Trend:
Recommendation:
Last: 18,074
Target price:
Protective stop:
OutlookPrice rebounded from its previous low support zone. This index is currently moving within a falling channel. We are likely to see price breaking out this channel to move higher towards 18,320. MACD remains bearish but Stochastic is moving higher.
Trading IdeaBuy 18,045 for 18,220 with a stop below 18,000
