The main global stock indices entered sideways channels, with the DE 40 and US 30 indices as the only exception. Find out more in our analysis and forecast for global indices for 30 January 2025.
Keeping rates steady may temporarily dampen demand for stocks in rate-sensitive sectors such as real estate, consumer goods, and technology. Companies with high valuations may suffer from the overvaluation statement. However, the Federal Reserve’s promise to consider a rate cut if inflation eases may support market sentiment in the long term.
Jerome Powell made it clear that the Fed needs to see real progress in fighting inflation before it can lower rates. At the same time, he noted that achieving the 2% inflation target is not necessary for a rate cut. This suggests that the rate could be lowered if the economy does not show positive results.
The US 30 stock index approached an all-time high within the uptrend. However, the growth pace is slowing down, signalling a potential correction. The US 30 technical analysis suggests a short-term correction after the price reaches an all-time high.
The following scenarios are considered for the US 30 price forecast:
The US 500 stock index has entered a sideways channel with boundaries at the current resistance and support levels. A trend is unlikely to form in the short term. According to technical analysis, the US 500 index could remain in the sideways channel for quite a long time.
The following scenarios are considered for the US 500 price forecast:
The US Tech stock index is trading within a sideways channel. A consensus between buyers and sellers is imminent. According to the US Tech technical analysis, the trend will unlikely form in the medium term. The price will unlikely reach a new all-time high either.
The following scenarios are considered for the US Tech price forecast:
The hint of the Bank of Japan’s rate increase is a signal to market participants that the regulator considers current economic conditions sufficient to tighten monetary policy. The central bank is also concerned about external factors related to US actions, including trade tariffs, geopolitics, and economic factors. They could affect Japan’s exports, the yen rate, and overall market stability.
If monetary policy tightening by the Bank of Japan leads to easing inflation and lower debt burden, this could improve the fundamental conditions for the economy, bolstering the stock market. Such actions often positively impact the stocks of banks and financial companies. If Japan’s economy continues to grow, domestic-oriented companies will remain attractive to investors.
The JP 225 stock index is trading within a sideways channel. According to the JP 225 technical analysis, the uptrend is unlikely, with the price expected to stay within the sideways range.
The following scenarios are considered for the JP 225 price forecast:
If Germany continues to struggle, this could mean the reassessment of investment strategies and a greater capital outflow from risky assets. The introduction of structural reforms or government stimulus (for example, infrastructure investments) may change the outlook and revive interest in shares.
Nevertheless, the news will have a negative short-term impact, especially on stocks of export-oriented companies. Much will depend on the future actions of the German government or the ECB. Investors will likely be cautious, waiting for new data and potential stimulus measures.
Following a minor correction, the DE 40 stock index reached a new all-time high. Demand for shares from investors is not weakening. According to the DE 40 technical analysis, the uptrend could continue if the price consolidates above the previously breached resistance level at 21,520.0.
The following scenarios are considered for the DE 40 price forecast:
The correction in global indices after the decline ended with the formation of sideways channels. The exceptions were the US 30 and DE 40 indices due to the specifics of their components. The US Federal Reserve took a cautious stance regarding future key rate cuts. Investors will focus on subsequent US inflation indicators.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.