Charting the markets: 1/8/24

Gold has seen fresh selling this morning, while oil prices are holding on to Friday’s gains. Wheat prices remain unable to breakout of their ongoing narrow range.

(AI Video Summary)

Asian stocks drop

During the Asian trading session, Asian stocks, especially those from China, dropped because of negative sentiment. This was a response to recent data from the US, which showed better-than-expected employment numbers initially, but later revealed negative revisions for almost an entire year and a decrease in actual employment. However, US stocks rallied towards the end of the week, which caused the Asian stocks to drop further in the Asian session.

FTSE 100 analysis

Looking at the FTSE 100, the daily financial bet indicates that the market opened at a similar level to the previous close. The index tested the lows, but managed to stay above them. If the index continues to stay above these intraday lows, there is a chance that the previous upward trend may resume. This could be supported by a potential agreement among US congressional leaders to reduce the possibility of a government shutdown. A small rebound in the market may also happen before the release of US CPI data on Thursday and the earning seasons on Friday.

In order for the FTSE 100 to change direction and become bullish, it needs to rise above the high from last Friday. If this happens, there is a possibility that the index will retest the highs from September and December. On the other hand, if the index falls below the intraday low, it could indicate that the market will further decrease towards the 200-day moving average.

DAX 40 analysis

Turning to the German equity index, the DAX 40, it experienced a slight decline on Friday, but managed to stay above previous lows. If it rises above the high from last Friday, there might be a minor shift to the upside. In this case, the index could target the levels seen in December and early January. However, it is crucial for the index to remain above the low from last Friday. If this level breaks, further declines may occur, bringing the index down to the highs seen in July and June of the previous year.

NASDAQ 100 analysis

In the US, the equity indices have stabilised after congressional leaders reached an agreement to avoid a government shutdown. The NASDAQ 100 held onto the highs from November after the non-farm payrolls data, but is currently trading slightly negative compared to last Friday's close. To see a bullish reversal, the index needs to stay above the recent lows. Falling below these levels may result in additional declines.

Last week, there was a shift in investors' focus away from tech stocks, which caused the NASDAQ 100 to drop.