US Stocks Fall on Apple Hiring & Spending News
We’veseen a mixed start for equities across the European open on Tuesday. While thecurrent correction lower in USD is broadly supportive of risk appetite, thereare still offsetting factors stopping equities markets from taking full advantageof a softer US Dollar.
US stock marketsslipped lower yesterday, giving back initial gains, in response to news thatApple plans to scale back spending and hiring into 2023. This comes on the backof similar news recently from other leading tech firms such as Meta Platformsand Tesla, and has been taken as the latest warning sign over the projectedhealth of the US economy. With recession fears building on the horizon later inthe year, the tech sector is likely to be among the worst hit from any slowdown,hence these defensive moves we are seeing.
Indeed,while the US Dollar is softening currently, expectations of further tighteningfrom the Fed next week look set to create headwinds for equities traders. Aheadof the FOMC, we’ll have the July ECB meeting this week which is widely expectedto see the bank hike rates for the first time in over a decade, adding to the waveof central bank tightening we are seeing.
TechnicalViews
DAX
The DAXcontinues to hold within the recent 12462.59 – 13067.45 range which has framedprice action over July. The market is still holding also within the larger bearchannel, keeping the focus on an eventual break lower, unless bulls can breakback above the channel top, putting focus on 13672.31 next.
S&P500
Themarket continues to hover below the 3910 resistance, following the rebound offthe 3613.50 lows. With both MACD and RSI bullish, the focus is on a breakhigher here and a run up to the 4153.50 level next unless bears can drive pricebelow the 3613.50 level.
FTSE
The FTSE isholding around the 7213.9 level currently, sitting about midway in the rangebetween the 6990.4 and 7362.6 level. While both MACD and RSI are turned higherhere, given the declines prior to the recent range, focus is on a break lowereventually with 6822.4 the broader target for bears unless bulls can break theupper range level near-term.
NIKKEI
TheNikkei continues to hold within the large falling wedge pattern which hasframed price action recently. The market has been grinding higher off the25595.3 lows but is yet to break the 27422.9 level. While this level holds as resistance,further ranging action is expected.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.