Indices

The broader US index rose on Wednesday as optimism prevailed around regional banks and for a successful resolution to the debt ceiling saga, but there are still reasons for caution

The Bank of England raised rates again on Thursday and kept the door open to further tightening, but the index shows resilience as the bank does not see recession any more

As growth companies are inclined to retain and reinvest their earnings back into the company, their expected dividend stream is pushed back into the future. This means that growth companies are more sensitive to interest rate movement than value companies due to these inherent time value of money characteristics i.e., a dollar today is worth more than a dollar in the future. The opportunity cost increases as interest rates rise…

GER30 is trending up on a primary trend basis.

NAS100 rose on Friday as markets viewed the solid employment report as a sign against recession, also helped by tech earnings and easing banking fears, but is cautious today as upcoming inflation figures loom

Banking fears creeped back in after First Republic disclosed massive deposit outflows. This weighed on the Index, but strong Big Tech results help the tech heavy-Index, ahead of PCE inflation update

The SPX500 had charted a higher trough followed by higher peak. This put the index into uptrend. However, the latest chart action has charted a lower peak. Some weakness has crept in, with market participants unwilling to take price higher than the previous higher peak.

Left shows the daily Ger30 chart. It is positioned in its bullish channel between the upper blue and red bands. Its RSI is above 50, which is the bullish side of the oscillator. However, the last eight trading sessions have drifted sideways in consolidation. This may be setting up a platform to take prices higher, given the positive indications.

The index faces difficulties on the cusp of a bull market, as markets brace for a series of earnings by tech heavyweights, including Facebook-parent Meta Platforms

The tech-heavy index is constrained after last month’s march, with this week’s earning by Netflix & Tesla not helping, as markets contemplate sticky inflation, hawkish Fed and prospects of economic slowdown

Given the size of its contribution to GDP, monitoring the health of consumption is important. By and large there are worrying signs. Total vehicle sales and underemployment are showing fragility in terms of their momentum and chain store sales are negative. The existing homes sales series has bounced somewhat but is yet to pass the threshold implying an underlying positive momentum. Consumer sentiment has turned positive but there is a…