Dow Jones hits new record high as EUR/JPY rises and natural gas slides
Dow Jones hits new record high as EUR/JPY rises and natural gas slides amid Fed rate cut expectations.
Overnight Summary
Wall Street yet again closed at record highs, fuelled by rallies in Tesla and Micron as well as firming expectations of a Federal Reserve (Fed) rate cut, while US inflation data came in hotter than forecast and jobless claims climbed to a near four-year high.
Corporate movers like Warner Bros Discovery and Centene surged, and Asian markets followed the Wall Street rally, with major indices in Japan, Korea, and Taiwan hitting fresh records too.
Dow Jones trades in record highs
The Dow Jones has surged substantially higher following a spike in jobless claims and hit a new record high at 46,137. The next upside target is the minor psychological 47,000 mark.
Good support may be seen between the 22 August and 9 September highs at 45,757-to-45,682.
Dow Jones daily candlesrick chart
EUR/JPY near one-year highs
EUR/JPY continues to sideways trade with a bullish bias and nears the mid-August high at ¥173.02, a rise above which would open the way to the July and current September one-year highs at ¥173.90-to-¥173.91.
Support below the May-to-September uptrend line at ¥172.60 sits at Tuesday's ¥172.14 low. If fallen through the 55-day simple moving average (SMA) at ¥172.06 may be hit as well.
EUR/JPY daily candlestick chart
Natural gas futures prices are coming off again
US natural gas futures are seen coming off their 8 September 10-week high at 281.6 and slipping towards the 2 September low at 253.6.
Were this level to give way, the mid-August low at 242.3 may be revisited. Below it lies the August 10-month low at 229.5.
Natural gas daily candlestick chart
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