Global equities benchmarks have started the week in a broadly positive manner with most indices trading in the green today. US and UK traders return after the holidays there on Monday and the big focus this week is on the US employment reports at the top of the week. The market is looking for jobs growth to have jumped from 266k last time to around 645k this time with the unemployment rate forecast to fall from 6.1% to 5.9%. Given the reopening underway across the last month, the market is expecting a solid number this time around.
There will also be a lot of focus placed on the average hourly earning figure for the month. Following the bumper reading seen last time (0.7% from -0.1% prior) the market is looking for a more modest 0.2% result. If the data prints in line with expectations this could create headwinds for equities markets, stoking inflation expectations once again and putting the focus back on the question of Fed tapering.
Technical Views
DAX
The DAX remains above the 15486.96 level for now, keeping the focus on further upside in the near term. MACD and RSI are both bullish, albeit rather flat, reflecting the lack of momentum here. To the topside, the channel top is the area to watch while any drop lower will turn the focus to 14791.27.
S&P500
The S&P is trading back up to high as price continues to climb back towards the 4236.50 level. While MACD and RSI are both bullish here, they are showing bearish divergence, warranting caution. Should we see any correction below 4182.50, 4116. Is the next support zone to note.
FTSE
The FTSE has started the week on a solid note with price breaking higher today as the recovery off the 6895.6 level continues. MACD is still bearish for now, though turning higher, with the RSI mobbing higher also keeping the focus on further upside here. Above 7137, bulls will be looking to challenge the 7241 level next.
NIKKEI
The NIKKEI has started the week on a softer note here, with price stalling just ahead of a test of the bear channel top and a retest of the broken bullish trend line. However, with both MACD and RSI bullish here, the focus is on further upside while price holds above 28356.6. Below there, 26932.1 is the next support to note.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
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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.