Dow and Nikkei 225 make gains, but Hang Seng slumps
While the Dow has hit yet another record high and the Nikkei 225 continues its recovery, the Hang Seng has shed more ground.
Dow reaches another new peak
The Dow Jones index has hit fresh record highs over the past two sessions, breaking above the previous high from late September.
So far, the price shows no sign of any of the usual October weakness often seen in election years, though the losses usually come in the second half of the month.
Having surged through 43,000, the index is now over 4% from the 50-day simple moving average (SMA), currently at 41,347. This might lead to some short-term consolidation in due course.
Nikkei 225 hits new three-month high
Over the past 24 hours, the Nikkei 225 index has reached its highest level since late July, continuing its recovery from the August crisis.
Steady gains are the order of the day at present, with intraday dips still being bought. Further gains target 41,163, the March high, and then over time the index will target the highs from July at 42,485.
For the time being, trendline support from early September continues to provide an underpinning for the rally. A close back below 39,000 would see the price below this trendline and also back below the early September peak, a possible bearish development.
Hang Seng falls further
Hopes of a rebound here have been dashed as the Hang Seng price resumes its declines on disappointment regarding the lack of more solid stimulus announcements.
The slump from the October highs has been brutal, but then the surge to 23,500 was rather overenthusiastic, and leaves the index, and Chinese stocks generally, vulnerable to profit-taking.
The reversal today puts the sellers back in charge in the short-term, and now we look to the August 2023 high at 20,370 and then the May 2024 high at 19,789 to provide some short-term support. A close back above 21,000 might suggest the index has bottomed out.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
