On Thursday, the Stoxx 600 closed 0.49% above last Friday’s close. Norway was again downgraded to an Uptrend Under Pressure. Of the 17 indices we cover, five are in an Uptrend Under Pressure, including the U.K. and France, and the rest are in a Confirmed Uptrend.
Author: Midhun Parameswaran
Global Focus Developed
Australia’s ASX All Ordinaries Index was flat this week. The index closed slightly below its 50-DMA and is testing resistance along that level. It remains in a Confirmed Uptrend and has seven distribution days currently, after adding one this week. Two distribution days will expire next week.
Global Focus Emerging
The CSI 300 lost 3.14% on slightly lower but above average volume this week. The market remains in an Uptrend Under Pressure with seven distribution days. The index staged a rally Friday after losing support at its 50- (~4,941, +1.7%) and 21-DMA (~4,883, +0.5%) in a four-day losing streak. Next support lies at July 28’s low (~4,664, -4.0%).
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
China A Shares
The CSI 300 gained 3.52% on modestly lower but above average volume this week. The market remained in an Uptrend Under Pressure with seven distribution days. The index retook its 50-DMA (~4,962, -1%) after breaking above resistance at the 21-DMA (~4,885, -2.6%). Next resistance lies at the high (~5060, +0.9%) of August’s rally, followed by the 100-DMA (~5,065, +1%). Next support is at the low of July 28 (~4,664, -7.0%). China’s consumer prices stayed muted in August while factory-gate prices rose by the fastest pace (+9.5% y/y) since 2008, boosted by higher commodity costs. M2 and new RMB loan growth fell short of consensus, although total social financing was slightly above expectations (RMB 2.96T versus expectations of RMB 2.75T). Cyclical mining, steel, non-ferrous, chemical, and shipping companies continued outperforming as strong demand amid tight supply drove up prices. Sold-off tourism stocks rallied. Brokers came off highs after advancing on news of the Beijing stock exchange. Clean energy led the loss. Real estate and home appliances were weak. Agricultural stocks lagged on weak pork prices. We observed highly mixed performance in terms of both stock benchmarks and sectors. The market is volatile with strong sector rotation. We recommend investors stay patient and adopt a selective approach.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back for three straight sessions, with each staging a downside reversal to close the week. The S&P 500 is now sitting just above its 50-DMA, a level that has acted as consistent, but now obvious support over the entirely of the year. The Nasdaq is now trading just above its 21-DMA, with the next level of support at 14,896, which may coincide with a rising 50-DMA. Each index added two distribution days this week, taking the count to three each with no expiration next week.
European Focus
Australia’s ASX All Ordinaries Index declined 1.5% this week. The index breached support along its 50-DMA and added two distribution days. It remains in a Confirmed Uptrend and has six distribution days. One distribution day will expire next week.
Global Focus Developed
Australia’s ASX All Ordinaries Index declined 1.5% this week. The index breached support along its 50-DMA and added two distribution days. It remains in a Confirmed Uptrend and has six distribution days. One distribution day will expire next week.
Global Focus Emerging
The CSI 300 gained 3.52% on modestly lower but above average volume this week. The market remained in an Uptrend Under Pressure with seven distribution days. The index retook its 50-DMA (~4,962, -1%) after breaking above resistance at the 21-DMA (~4,885, -2.6%). Next resistance lies at the high (~5,060, +0.9%) of August’s rally, followed by the 100-DMA (~5,065, +1%). Next support is at the low of July 28 (~4,664, -7.0%).
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
