Daily Digest: Monday 29th April
USA
US equity markets continued to trade higher on Monday, with the three major indexes followed all closing up for a second consecutive session. The Dow ($INDU) led gains, rising 147.4 points (0.39%) to 38,387,06, followed by the Nasdaq 100 ($NDX) which rose 64.42 points (0.36%) to 17,782.72, and the S&P 500 ($SPX)followed closely behind rising 16.19 points (0.32%) to 5,116.15.
Tesla ($TSLA) managed to remain in the headlines through Monday, as CEO Elon Musk concluded a business trip to China. This comes as concerns mount amongst investors over Tesla’s ability to maintain a competitive market share across Asian economies, with the firm even restructuring their Chinese market pricing model this time last week. Tesla shares closed the session 15.31% higher at $194.05. This move comes against recent market momentum which pushed shares to 52-week lows of $138.80, as investor confidence is restored in the business thanks to new product offerings alongside the rollout and implementation of advanced software packages.
Europe
The UK’s FTSE 100 (FTSE) continued to rally through Monday, closing higher for a third consecutive session. The index closed 7.2 points higher (0.09%) at 8,147.03, after breaking new all-time highs at the intraday peak of 8,189. Only 36 constituents closed down, while 63 closed up, and 1 was a non-mover. The 1-hour RSI indicates that the market sentiment remains bullish, however the indicator has moved from >70 to 57.98, suggesting an increased sell-side presence.
Equity performance across central Europe were mixed, as both the CAC and Dax experienced declines. The Pan European STOXX 600 (€SXXP) rose 0.54 points (0.11%) to 508.34, while the French CAC (€FCHI) fell 23.09 points (0.29%) to 8,065.15, and the German DAX (€GDAXI) fell 29.23 points (0.16%) to 18,118.32.
Rest of the World
The Japanese Yen has remained at the centre of speculation after FX markets opened on Sunday. The currency breached the 160 level against the USD during the Asian session, rising as high as 160.233. However, the Yen’s downward momentum was halted by a shock move to the upside, which saw the Yen strengthen as far as 154.528 as the European session commenced. The lack of any notable macroeconomic events or data prints played into the narrative that Japanese officials had made a long awaited intervention in currency markets. Despite a national holiday, the head of Japanese currency policy, Masato Kanda, refused to comment on claims that authorities had led an intervention, leaving traders until the end of may for policy updates. The Yen’s move to the upside has been largely rejected by markets with an appreciation only increasing rates from 159.6 to 164.5 taking the currency back to the level it was trading at on Wednesday last week. Market activity through the European session into the US session also saw the Yen trend revert to the downside, falling to 156.8 as of 15:25 GMT. The minimal positive affects of a possible intervention are unlikely to support Yen confidence, with bets on yen depreciation appearing more effective.
Japanese equity markets were closed as the nation observes the Showa bank holiday, with trading resuming on Tuesday morning.
Bullish momentum toward Chinese equities continued through Monday. The Shanghai Stock Exchange Composite Index (¥SSE) rose a further 24.4075 points (0.79%) to 3,113.0432. Traders experienced a new level of technical resistance around the 3,119 level, which prices consolidated under through to the close. The 1-day charts indicate that the prevailing trend remains moderately bullish, with the MACD sitting above the signal line, while the RSI is 61.31. However, on the shorter 1-hour time frame views, an RSI of 75.7 indicates that the market is overbought, indicating that traders may be vulnerable to near term price corrections.
The Indian Nifty 50 (₹NSEI) benefited from a continuation of bullish momentum, closing 223.45 points (1%) higher at 22,643.40. Traders managed to break last weeks highs of 22,625, having exercised support at the 22,450 level as the foundation for a move to the upside.
Commodities
News of a possible ceasefire agreement between Israel and Hamas eased energy markets through Monday. WTI Crude prices took a significant move to the downside falling 1.3% to $82.76 per barrel, the largest single session decline since April 14th.
Gold traded within tight margins through the session, priced at $2,346.30 per ounce as of 21:00 GMT, marking a 0.04% 24 hour increase. This move marks a third straight day of gains, though traders will operate with a degree of caution as markets edge towards Wednesday’s FOMC meet.
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