Daily Digest: Tuesday 12th November
Equities
As to be expected following a strong equity rally, prices experienced sell-offs through Tuesday’s session, albeit minor when compared to recent gains. In Asia, Japan’s benchmark equity index, the Nikkei 225 (¥N225) fell 157.23 points (0.40%) to 39,376.09. In terms of price analysis, on a one-day time frame, the index is trading between two historically significant levels, a tested support level of 37,640 and resistance at 39,900. On a more technical level, the RSI is just above 55 signalling the presence of bullish momentum, a signal confirmed by the MACD which is floating just above its signal line. As noted, traders should only show concern if sell-offs are sustained on a longer time frame. In China, the Shanghai Composite (¥SSE) also broke trend, falling 48.1 points (1.39%) to 3,421.97, as traders push away from it’s all time highs at 3,674.
The picture for European traders was similar, though declines were sharper despite no significant macroeconomic changes this week. The UK’s FTSE 100 (FTSE) fell 99.42 points (1.22%) to 8,025.77 as the index sits just shy of 450 points off of its all-time highs. These declines can in part be attributed to a dip in prices across key commodity assets, the precious metal Gold, and fuel Crude Oil. Global crude prices have fallen some 5.51% in the last week hitting key FTSE players including Shell and BP, whilst Gold declines have hit mining giants. Looking to the continent, the Pan-European STOXX 600 (STOXX) fell 10.14 points (1.98%) to 502.23 trading between the central pivot and support level one. This indicates that bearish momentum is strong, confirmed by the RSI which is 37.65, a figure below the benchmark 50.
US markets experienced the same shift to the downside as the Nasdaq, S&P, and Dow all closed lower. The S&P 500 ($SPX) fell 17.36 points (0.29%) to 5,983.99, dipping below the key psychological level of 6,000, a level broken for the first time in history during Monday’s session. The Nasdaq 100 ($NDX) fell 35.8 points (0.17%) to 21,070.79, while the Dow ($INDU) fell 382.15 points (0.86%) to 43,910.98. The attention of trader’s should now have pivoted to Wednesday’s CPI data prints, as markets begin to price in rate cut estimates for the Fed’s December meet.
What to Watch Tomorrow
US CPI MoM
US CPI YoY
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice