Australia’s ASX All Ordinaries Index was down 0.04% this week. The index has three distribution days and remains in a Confirmed Uptrend.
Author: Sandeeep N
Global Focus Emerging
The CSI 300 fell 0.02% for the week on slightly increased but still-belowaverage volume. The market remains in a Confirmed Uptrend with two distribution days. Recently released macro data was not as expected, and there is still the possibility of U.S.-China trade war tensions, leading to a strong wait-and-see market sentiment and continuous volatility. Interest rate cuts by several countries’ central banks boosted global capital markets. The CSI 300 is still weak, oscillating around ~3,800. We are looking for the index to hold support above the 100-DMA, near 3,796. Failure to hold this level would raise concern. The next support is the 50-DMA or the gap below (~3,715). Given that the market is waiting for the opening of Nasdaq-style tech board next Monday, we expect it to continue sideways. We advise investors to stay patient and focus on leading stocks that are trading constructively with a high probability of excellent Q2 earnings results.
Global Focus Frontier
Al Rajhi Bank is world’s leading Islamic bank with total assets of SAR 356B. The bank continues to grow by expanding its loan and deposit market share.
China A Shares
The CSI 300 fell 2.17% for the week on lower volume. The market remains in a Confirmed Uptrend with two distribution days. It moved sideways following a sharp correction Monday due to the lower expectations of interest rate cuts in the U.S. Trading volume fell further and market sentiment was depressed, driven by interest rates and the launch of China’s Nasdaq-style tech board. However, we believe these influences are short-term. With the upcoming earnings announcements, fundamentals will drive market direction. Key June import/export trade and financial data released after market close Friday showed the economy has not improved fundamentally. The CSI 300 faces consistent resistance at ~3,900; we expect the index to continue moving sideways in the near term, with support at the 100-DMA (~3,774) and 50-DMA (~3,700). Investors are advised to watch earnings closely and gradually buy stocks performing well and rebounding from key price support.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are trending constructively higher with just two and three distribution days, respectively. Near-term support remains the 10- and 21-DMA on both indices.
European Focus
On Thursday, the Stoxx 600 was down 0.12%, marking a week of losses. Compared with last Friday’s close, the index has lost 6.44% through Thursday. Today the index inched up along with other major markets in the region, as the eurozone’s industrial output beat expectations.
Global Focus Developed
Australia’s ASX All Ordinaries Index was down 0.63% this week. The index has three distribution days and remains in a Confirmed Uptrend.
Global Focus Emerging
The CSI 300 fell 2.17% for the week on lower volume. The market remains in a Confirmed Uptrend with two distribution days. It moved sideways following a sharp correction Monday due to the lower expectations of interest rate cuts in the U.S. Trading volume fell further and market sentiment was depressed, driven by interest rates and the launch of China’s Nasdaq-style tech board. However, we believe these influences are short-term. With the upcoming earnings announcements, fundamentals will drive market direction. Key June import/export trade and financial data released after market close Friday showed the economy has not improved fundamentally. The CSI 300 faces consistent resistance at ~3,900; we expect the index to continue moving sideways in the near term, with support at the 100-DMA (~3,774) and 50-DMA (~3,700).
Global Focus Frontier
Al Rajhi Bank is world’s leading Islamic bank with total assets of SAR 356B. The bank continues to grow by expanding its loan and deposit market share.
China A Shares
The CSI 300 gained 1.77% for the week on slightly increased volume. The market remains in a Confirmed Uptrend with one distribution day. The leaders of the U.S. and China agreed to resume trade talks, and the U.S. agreed to suspend new tariffs on Chinese goods, causing the market to gap up on increased volume Monday. but has since pulled back while volume has continued to shrink. The CSI 300 faces great pressure after breaking through the gap, with the next immediate resistance at ~3,942 then at rally highs of ~4,126. Immediate support is at ~3,854 and then ~3,715. Chinese macro data for June will be released next week, and earnings season will start soon, so we expect the market to focus on fundamentals. Investors are advised to stay patient and focus on leading stocks that may have strong earnings and are breaking out of sound bases or rallying off key price support.
