[ad_1]
The index tried to reduce some of its early losses, after receiving some support from the stability of the important support level 31,727.00.
The Dow Jones Industrial Average declined during its recent trading on intraday levels, to record losses in its last sessions by -0.87%. It lost about -280.83 points, and settled at the end of trading at the level of 31,874.58, after rising by 1.06% during Tuesday’s trading.
Shares of Credit Suisse fell by as much as 31%, and trading in the shares of several European banks stopped after the National Bank of Saudi Arabia ruled out increasing its stake in the bank. Previously the bank revealed that it had found “material weaknesses” in the preparation of financial reports for the years 2022 and 2021.
This fueled concerns among investors that after three US banks have already collapsed, Credit Suisse might be the next sign of trouble in the financial sector. Some were reassured by the news that the help of the Swiss National Bank could save Credit Suisse, after the Federal Reserve, Treasury and Federal Deposit Insurance (FDIC) launched emergency measures Sunday to shore up deposits and boost confidence in the banking system after the Silicon Valley bank.
On the economic data front, the Producer Price Index (PPI) for February showed a decline of -0.1% m/m in the headline figure compared to an expected rise of 0.3%. On a yearly basis, PPI increased by around 4.6%, well below expectations of 5.4%. Meanwhile, retail sales fell slightly more than expected in February by -0.4% m/m vs. an expected decline of -0.3%.
In other economic news homebuilders’ sentiment improved for the third consecutive month in March, with the NAHB Housing Market Index at 44, above forecasts of 41. Meanwhile, business inventories unexpectedly fell 0.1% in January, compared to expectations for growth of 0.1%.
- Technically, the index suffers from the continued negative pressure of its trading below the simple moving average for the previous 50-day period.
- It is under the control of the bearish trend in the medium term and is trading along a trend line, as shown in the attached chart for a period (daily).
- The index tried to reduce some of its early losses, after receiving some support from the stability of the important support level of 31,727.00.
- Positive signals are starting to appear in the relative strength indicators, after reaching areas that are highly oversold.
Therefore, we expect the index to decline during its upcoming trading, especially if it breaks the support level at 31,727.00, to then target the 30,454.50 support level.
Ready to trade the Dow Jones in Forex? Here’s a list of some of the best CFD brokers to check out.
[ad_2]