Global markets are mostly trading neutrally
Market Review

Global markets are mostly trading neutrally

On Wednesday, August 30th, global markets are predominantly trading in a neutral zone. Yesterday, American investors responded positively to weak labor market data; however, today the market needs new triggers for growth. In China, the rebound of major indices has also paused as the short-term effects of new stimulus measures have worn off. Meanwhile, in the Russian market, investors are analyzing a significant number of financial reports released yesterday according to IFRS.

On Tuesday, the Dow Jones index rose by 0.85% in the American market, the S&P 500 index increased by 1.45%, and the Nasdaq Composite index strengthened by 1.74%. Investors were pleased with the release of weak labor market statistics: the number of job openings in the JOLTS market was 8.827 million, against a forecast of 9.465 million. Weak statistics, in the view of investors, increase the likelihood of a pause in the tightening cycle of monetary policy by the Federal Reserve (Fed) and bring closer the moment of reducing the key interest rate, which allows the market to react positively to such news.

On Tuesday, the key drivers of growth in the American market were Tesla (NASDAQ:TSLA) (+7.69%) and Nvidia (NASDAQ:NVDA) (+4.16%) stocks. Earlier, Tesla launched a $300 million computing cluster using Nvidia products.

The corporate reporting season in the US is gradually ending, but today after the close of trading, reports will be presented by software developer Salesforce (NYSE:CRM) and cybersecurity company Crowdstrike (NASDAQ:CRWD). From macroeconomic statistics, data on US GDP for the second quarter, ADP labor market statistics, the index of pending home sales in the US real estate market, and weekly oil inventory data from the EIA will be released.

At the beginning of trading, the Hang Seng index in Hong Kong attempted to continue its recovery due to new stimulus measures in the Chinese economy. However, by the end of the trading day, it lost all its growth and closed in a neutral zone. Xiaomi (HK:1810) (+0.81%) stocks looked slightly better on the market, supported by financial results that exceeded market expectations. Meanwhile, the shares of electric car manufacturer NIO (HK:9866) (-7.45%) became the trading outsider, disappointing investors with their report from yesterday.

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The European STOXX 600 index is trading symbolically in the negative. Investors are cautious ahead of the publication of inflation data in Germany. Among the growth leaders among companies in the Euro Stoxx 50 index are Intesa Sanpaolo SpA (BIT:ISP) (+1.18%), BBVA (BME:BBVA) (+1.02%), and BNP Paribas (EPA:BNPP) (+0.65%). Among the underperformers, we can highlight Prosus (AS:PRX) (-2.62%), Iberdrola (-2.45%), and Kone Corporation (HE:KNEBV) (-1.18%) stocks.

Technical Overview

S&P 500 Index

S&P 500 price chart

The S&P 500 index halted its correction, initiating a rebound from the 100-day moving average level. However, at the moment, it is trading around the 50-day moving average, which could serve as local resistance.

STOXX 600 Index

At the beginning of trading, the European index made an unsuccessful attempt to break above the medium-term descending channel. In this situation, in the short term, there is likely to be a continuation of movement within the channel.

CSI 300 Index

The Chinese index was unable to break the local resistance at the 3900 points mark, which diminishes bullish prospects. The nearest support is located around the previous local maximum at the 3800 points area, and the next resistance is the 4000 points level.