Rising inflation and looming interest rate hikes overshadowed any good news about the global growth outlook as the recent momentum in equity markets loses steam.

Positive U.S retail sales and industrial production data helped to lift the global growth picture despite the Chinese economic slowdown. Data also showed Japan’s economy regressed less than what was expected but all eyes are on U.K inflation now.

Asian markets turned lower on Wednesday after a four-day winning streak as CPI news out of the U.K dampen any glimmer of hope of a global growth recovery anytime soon. British consumer price inflation rose to 9%, the highest it has been since the 1980s. The Bank of England (BoE) has forecasted CPI would cross the 10% threshold and is expected to raise interest rates to levels last seen during the financial crises era.

The Wall Street 30 Technical Analysis

The price action on the Wall Street 30 (WS30) remained somewhat flat over the last week after reaching a new low point at 31225 and regaining momentum back to the 32456-support level.

If the current 32456 support level does not hold, then we could expect the bears to take control and push prices back lower to the 31870 and 21225 support levels.

For the bull case we need to see an improvement in the fundamentals picture and a rebound in price from the technical 23456 support level. The 50-day simple moving average of price (blue line) will be watched closely as it is also acting as support to higher prices as well as the RSI indicator.

Current State / Chart Source: Wall Street 4H Timeframe  - GT247 MT5 Trading Platform

Take note: The outlook and levels might change as this outlook is released during the current days (Wednesday the 18^th of May 2022) U.S Market open.

Sources – MetaTrader5, Reuters, Tom Westbrook

Barry Dumas | Market Analyst at GT247.com

Barry has 12 years of experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.

Disclaimer:

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third-party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.