12 May 2025,00:20
Daily Market Analysis
12 May 2025, 00:20
Key Takeaways:
*U.S. equity futures jump after the White House confirms a preliminary trade deal with China following talks in Geneva.
*Risk appetite rises globally, aided by signs of de-escalation in the U.S.-China tensions and a ceasefire agreement between India and Pakistan.
Global markets kicked off the week on a bullish note as U.S. stock futures surged Sunday evening, following news that Washington and Beijing had reached a trade agreement during high-level discussions in Geneva. While the White House stopped short of providing concrete terms, U.S. Trade Representative Jamieson Greer described the talks as “very constructive,” suggesting key differences may have narrowed faster than expected.
Greer and economic adviser Bessent reportedly briefed President Trump on Saturday evening, affirming that the president is “fully informed” on the progress. “The speed at which we came to agreement shows the gap may not have been as wide as perceived,” Greer noted.
The apparent breakthrough marked a sharp shift in global sentiment, with investors embracing risk assets amid hopes of renewed trade flows and economic stability. Equity markets across Asia are expected to reflect the upbeat mood when they reopen.
The Nasdaq is currently consolidating near the 61.8% Fibonacci retracement resistance at 20,105. A decisive breakout above this level may pave the way for a further rally toward the next resistance at 21,000.
Momentum indicators support the bullish bias: the MACD has formed a golden cross, and the RSI holds at 61, remaining above the neutral 50 mark.
However, failure to breach the 20,105 resistance could trigger a pullback, with the index potentially retesting the 50% Fibonacci support at 19,470.
Resistance level: 20105.00, 21000.00
Support level: 19470.00, 18835.00
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