Daily Digest: Thursday 25th April
USA
US equity performances were negative through Thursday’s session, as the major indexes we follow ended three session winning streaks. The Dow ($INDU) led declines, falling 375.12 points (0.98%) to 38,085.80, while the Nasdaq 100 ($NDX) fell 96.3 points (0.55%) to 17,430.50, and the S&P 500 ($SPX) fell 23.21 points (0.46%) to 5,048.42.
Europe
Following a slight sell-off yesterday, the FTSE 100 (FTSE) rebound reaching a new record close at 8,078.86. The index finished the session 38.48 points (0.48%) up, with traders testing the 8,100 level at its intraday peak. Anglo American (AAL.L) led index gains, with shares rising 16.1% after news of a potential buyout from industry competitor BHP surfaced. Only 23 index constituents closed the session higher, while 75 closed down with 13 companies experiencing ≥2% declines. Trading into Friday the key levels to watch will once again be the 8,105 technical resistance, alongside possible support 8,075.
Equity performance across central Europe were not as strong, as index declines extended. The Pan European STOXX 600 (€SXXP) fell 3.32 points (0.64%) to 502.38, while the French CAC (€FCHI) fell 75.21 points (0.93%) to 8,016.65, and the German DAX (€GDAXI) fell 171.42 points (0.95%) to 17,917.28.
Rest of the World
The Japanese Nikkei 225 (¥N225) experienced a second >2% sell off in less than a week, falling 831.6 points (2.16%) to 37,628.48. This comes as traders exercise caution toward equities into tomorrow’s BOJ rate decision, the central bank is expected to hold rates within their current floating range between 0-0.1%, though could deviate as an intervention strategy to strengthen the Yen. The Tokyo Area CPI data print also falls tomorrow, with figures acting as a leading indicator for wider Japanese inflation with analysts expecting inflation to fall 0.2 percentage points to 2.2%.
The Japanese Yen continued downwards through Thursday, breaking new 30-year lows against the US dollar, after traders broke the key technical resistance of 155 on Wednesday. As of 15:52 GMT the currency pair was trading at 155.578, slightly off of the days low around the newly formed resistance level of 155.75.
China’s Shanghai Stock Exchange Composite Index (¥SSE) continued to rise through Thursday, rising 8.08 points (0.27%) to 3,052.90. The major technical support exercised throughout the session was at 3,042 protecting investors to the downside as prices were rejected at 3,060. On the 1-hour charts, the RSI currently sits at 55, indicating moderately bullish market sentiment heading into Friday.
The Indian Nifty 50 (₹NSEI) gained some momentum through Thursday, closing 167.95 points (0.75%) higher at 22,570.35. The index managed to pick up the pace following Tuesday and Wednesdays marginal price movements. Traders broke through a key technical resistance at 22,450 as traders tested new support at 22,500.
Commodities
Despite trading within tight ranges through the afternoon session WTI Crude prices rose 1.17% into the evening, trading at $83.78 per barrel. This move occurred in the absence of any notable macroeconomic catalysts.
Gold market momentum also turned through Thursday, with prices ending a three session loss streak. Traders benefited from increased interest rate noise, as speculation over rate cuts increases prior to the Fed’s meet next week. If expectations are pushed beyond Summer, the feasibility of 75bps of cuts this year is drawn into question. Despite this prices rose 0.29% to $2,345.1 per ounce, after traders utilised support at 2,335 to push prices higher into the evening.
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