The Dow Jones closed marginally up 28.7points on Friday, wrapping last week’s win underpinned by an above-expected 4Q22 GDP growth and Tesla’s share price surge, which managed to hoist the Nasdaq into positive territory for the 4th consecutive week. The US Retail Sales (Dec.) showed contraction at -5.8% YoY (vs forecast -4.1%, vs previous -5.7%), while Existing Home Sales (Dec.) came out higher than expected at 4. 02 million (vs forecast 3.96 million, vs previous 4.08 million). This combination of economic data points to the economic slowdown & declining purchasing power that the Fed needs to conclude a soft landing.

China’s stock market will reopen today after a week of the Lunar New Year holiday, which will surely bring more colour to the global financial market; while Germany’s 4Q22 GDP data, which will be released later in the afternoon with forecast at 0.8%, contracted from the previous period at 1.2%. JCI closed last week with a steady rise through the medium-term Resistance line, despite being 2 points lower than the 6900 Target. With today’s favourable market sentiment, NHKSI RESEARCH expects JCI to be able to continue this short-term uptrend towards 6900-7000 while keeping an eye on the 6875-6850 Support level to break this Uptrend intact. Market participants are welcome to average up gradually but remain cautious as JCI approaches the psychological level of 7000.

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