Indices

GER30 short-term analysis - 27 June 2023

The central bank of China slashed a series of key interest rates recently, in order to support waning economic growth, but markets were unimpressed and CNH50 continues to drop

The SPX500 is up close to 15% since its March low of around 3,800. However, the VIX, which is commonly referred to the fear index may be suggesting caution.

The index is under pressure after the Bank of England accelerated the pace of tightening on Thursday, in response to the latest hot inflation report

The GER30 has moved into its bullish channel.

The PBoC lowered a key short term policy rate in order the help the country’s economic recovery, following a series of disappointing economic data, while the CHN50 finds some support

The SPX500 is trading more than 20% from its October low. It is generally considered that a 20% increase off a recent low suggests a bull market, whilst a 20% decline connotes a bear market. This definition may be considered loose, and filters need to be applied so that whipsaws do not continuously swing it between bull and bear market. E.g., typically, another 10% move in the opposite direction is…

The NAS100 is a growth index and is generally sensitive to interest rates. There are concerns that the Federal Reserve will keep borrowing costs higher for longer and this is currently impacting the index.

The index finds supprort after dovish comments from Fed officials and successful passage of the debt ceiling agreement by the House, with focus now shifting to the Senate vote and the critical Jobs Report

The weekly NAS100 has charted a series of higher troughs followed by higher peaks. This puts the index into an uptrend.

The US2000 tracks the performance of 2,000 small-cap US stocks. It is generally a more volatile index, as smaller companies have more limited access to financial resources than big companies. Many view the US2000 as a barometer of the US economy, due to its sensitivity to macroeconomics. Thus, its underperformance is worrisome.