S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Facts:
- The lack of major publications this week may allow for a potential rebound in the stock market.
- The recent flood of negative news has led to an extremely pessimistic sentiment toward U.S. equities.
Recommendation:
Long position at market price
- TP: 2200
- SL: 2000
Opinion:
In recent weeks, the U.S. stock market has experienced extremely negative sentiment, which led to over 10% declines in the valuations of major indices such as the US500 and US100. The US2000 index suffered even more, losing nearly 20% from its peaks, and is currently trading about 15% below its highs.
This week, the macroeconomic calendar does not contain any significant publications, which may give investors a moment to catch their breath and room for a calmer analysis of the market situation.
We also assume that after the recent unexpected decisions regarding tariff policy, the risk of further negative surprises in this area is now limited. The announcement of a broad list of tariffs against all trading partners, scheduled for April 2, may mark the peak level of U.S. protectionism. From that point on, we expect countries to seek to renegotiate more favorable trade agreements with the U.S.
As a result, the stock market may experience a rebound and a return to growth—at least in the short term. In this scenario, we recommend taking a long position on the US2000 contract at market price.
