jlk – World stock indices experienced a slowdown in gains this week, ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes and the financial report of the technology giant Nvidia.
Investors are awaiting further clues about the US central bank’s plans to taper monetary stimulus and address high inflation pressures.
Meanwhile, Nvidia is expected to report strong fourth-quarter earnings, driven by high demand for graphics and computing chips.
FTSE 100 Halts Below Six-Week High
The FTSE 100 index in the UK experienced a correction after reaching a six-week high at 7,750 on Tuesday, supported by positive corporate financial reports, lower-than-expected UK inflation, and stronger-than-expected retail sales.
However, the UK benchmark stock index slipped back below the September peak level at 7,747 and is likely to retest minor support levels at 7,710 and around the psychological level of 7,000 ahead of the release of the FOMC minutes on Wednesday night.
If these support levels do not hold, the FTSE 100 index may potentially decline further to the Monday’s low of 7,690.
Conversely, if the FTSE 100 index manages to break through the resistance levels at 7,747-7,750, the next target is the December peak level at 7,769.
DAX 40 Still Consolidating Below Record Levels
The DAX 40 index in Germany continued to move sideways below last week’s record level of 17,197 and dropped to the daily low of 17,020 on Tuesday before rebounding.
Minor resistance levels above Monday’s peak at 17,109 can be found at Thursday’s high at 17,123.
If the low of 17,020 is breached, the DAX 40 index is likely to form a minor peak pattern with the psychological level of 17,000 as the next target.
This German stock index experienced a decline after the European Central Bank (ECB) stated that interest rate cuts were not discussed in the monetary policy meeting, triggering profit-taking in the European stock markets.
Nasdaq 100 Weakens Ahead of Nvidia Earnings Report
The US Nasdaq 100 index remained under pressure ahead of the release of Nvidia’s financial report after the market close on Wednesday, after declining for three consecutive days to reach a three-week low of 17,396 on Tuesday.
If this level fails to hold, the Nasdaq 100 index is likely to decline to the late January low of 17,119.
However, if the level of 17,396 holds, the Nasdaq 100 index could rebound to Monday’s low of 17,609, with strong resistance levels between the late January and early February highs at 17,668-17,681.
Nvidia is expected to report fourth-quarter revenue of $7.4 billion, up 54% annually, and earnings per share of $3.09, up 66% annually, due to high demand for its products in gaming, data center, and artificial intelligence fields.
World Stock Indices Slow Down, Awaiting Clues from The Fed and Nvidia
World stocks experienced a slowdown in gains this week, ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes and the financial report of the technology giant Nvidia.
Investors are awaiting further clues about the US central bank’s plans to taper monetary stimulus and address high inflation pressures.
Meanwhile, Nvidia is expected to report strong fourth-quarter earnings, driven by high demand for graphics and computing chips.
The FTSE 100 index in the UK experienced a correction after reaching a six-week high at 7,750 on Tuesday, supported by positive corporate financial reports, lower-than-expected UK inflation, and stronger-than-expected retail sales.
However, the UK benchmark stock index slipped back below the September peak level at 7,747 and is likely to retest minor support levels at 7,710 and around the psychological level of 7,000 ahead of the release of the FOMC minutes on Wednesday night.
If these support levels do not hold, the FTSE 100 index may potentially decline further to the Monday’s low of 7,690.
Conversely, if the FTSE 100 index manages to break through the resistance levels at 7,747-7,750, the next target is the December peak level at 7,769.
The DAX 40 index in Germany continued to move sideways below last week’s record level of 17,197 and dropped to the daily low of 17,020 on Tuesday before rebounding.
Minor resistance levels above Monday’s peak at 17,109 can be found at Thursday’s high at 17,123.
If the low of 17,020 is breached, the DAX 40 index is likely to form a minor peak pattern with the psychological level of 17,000 as the next target.
This German stock index experienced a decline after the European Central Bank (ECB) stated that interest rate cuts were not discussed in the monetary policy meeting, triggering profit-taking in the European stock markets.
The US Nasdaq 100 index remained under pressure ahead of the release of Nvidia’s financial report after the market close on Wednesday, after declining for three consecutive days to reach a three-week low of 17,396 on Tuesday.
If this level fails to hold, the Nasdaq 100 index is likely to decline to the late January low of 17,119.
However, if the level of 17,396 holds, the Nasdaq 100 index could rebound to Monday’s low of 17,609, with strong resistance levels between the late January and early February highs at 17,668-17,681.
Nvidia is expected to report fourth-quarter revenue of $7.4 billion, up 54% annually, and earnings per share of $3.09, up 66% annually, due to high demand for its products in gaming, data center, and artificial intelligence fields.