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Rallies in FTSE 100, DAX 40 and Dow have further to go Outlook on FTSE 100, DAX 40 and Dow as investors pile back in to global stock markets. Source: Getty Images Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Wednesday 24 April 2024 13:48 FTSE 100 hits yet another record high A weaker pound sterling and foreign investor buying of the undervalued UK blue chip index propelled the FTSE 100 to a record high on Monday. The pound sterling bouncing back following hawkish comments by BoE chief economist Huw Pill has not put a spanner in the works with the FTSE 100 hitting yet another record high and remaining on track for its fourth straight day of gains. Minor support sits between the early-to-mid-April highs at 8,046 to 8,017. Medium-term the 161.8% Fibonacci extension of the March-to-June 2020 advance, projected higher from the October 2020 low, around the 8300 mark represents a possible upside target. Source: ProRealTime DAX 40 regains lost ground The DAX 40’s strong rally off last week’s 17,400 low has gained traction and is trying to overcome last week’s high at 18,195. If overcome on a daily chart closing basis, the 8 April high at 18,329 will be in focus, together with the 4 April high at 18,429. Minor support can be spotted around the 5 April low at 18,085 and around the psychological 18,000 level. Source: ProRealTime Dow sees strong three straight day rally Since last week the Dow Jones Industrial Average regained lost ground and has risen by around 3% with the 55-day simple moving average (SMA) at 38,783 representing the next upside target, together with the 10 April high at 39,029. Potential slips may find support around the 38,452 March low and further down, around the late February 38,336 low. Source: ProRealTime

Gold price drifts down, while WTI crude price and natural gas price move higher Commodities recovered overnight, as natural gas prices rallied to their highest level since February, while oil prices surged off Tuesday’s low. Meanwhile, the gold price drifts downwards. Source: Getty Images Written by: Chris Beauchamp | Chief Market Analyst, London Publication date: Wednesday 24 April 2024 13:33 Gold struggles to hold its ground Gold prices found buyers yesterday as it dipped below $2300, briefly hitting a three-week low. Early trading this morning has seen a cautiously-positive start, and further gains above $2350 may suggest that a low is in place. Sellers will look for a reversal back below $2300 in order to open the door towards the 50-day simple moving average (SMA). Source: ProRealTime WTI forms a higher low? Oil prices staged an impressive bounce off the 50-day SMA on Tuesday, having spent the previous three sessions forming a short-term low above $81. A higher low looks to be in place for the time being, which then opens the way back to the peak from early April above $87. A fresh bearish view would require a reversal back to $81, and then a close below the lows of last week. Source: ProRealTime Natural Gas rallies to three-month high Natural gas has finally enjoyed a strong rally over the week so far, moving above 2000 at last and returning to the 100-day SMA for the first time since the beginning of the year. Of course, all this merely results in a substantially lower high relative to January, though the move above the February high at 2068 does help to bolster a short-term bullish view. The 2200 low from December becomes the next target. Meanwhile, sellers will be looking for a reversal back below the February high to suggest that a new leg lower has begun. Source: ProRealTime

Tesla, the first of the Magnificent 7 to report earnings, surged after it announced plans to build more affordable electric vehicles (EV). Source: Getty Images Shares Tesla, Inc. Electric vehicle Vehicle Share price Technical analysis Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Wednesday 24 April 2024 09:55 Tesla share price surges after Q1 results Tesla, the first of the Magnificent 7 to report earnings, surged after it announced plans to build more affordable electric vehicles (EV). New affordable model plans offset earnings miss Tesla shares surged in after-hours trading as the electric vehicle maker announced plans to accelerate the launch of new affordable EV models, despite reporting first quarter (Q1) earnings that missed Wall Street estimates. For the Q1 of 2024, Tesla reported revenue of $21.3 billion, down 9% year-over-year, attributed to reduced vehicle average selling prices and a decline in deliveries. Analysts had expected revenue of $22.15 billion. Adjusted earnings per share (EPS) came in at $0.45, slightly below the consensus estimate of $0.46. Investors cheer plans for cheaper models In a statement accompanying its Q1 2024 earnings report, Tesla said it plans to launch new models, including more affordable EVs, ahead of its previously communicated start of production in the second half of 2025. "These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up," the company stated. Cost reduction plans trimmed Tesla acknowledged that this accelerated timeline "may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times." Gross margins hit by price cuts Gross margins at Tesla were 17.4% in Q1, down from 19.3% a year ago, reflecting the impact of the company's repeated price cuts on its vehicles to boost demand. Tesla stock price: technical analysis Despite the earnings miss, Tesla shares surged 6.3% to around $153 in after-hours trading following the release of its Q1 report and new EV model launch plans with these now showing a pre-market price of around $164. Source: Google Finance Tesla had seen its stock price fall more than 43% so far in 2024 amid concerns about pricing pressure and layoffs prior to the Q1 report. Tesla weekly candlestick chart Source: TradingView For the July 2023 to April 2024 downtrend to be questioned, a bullish reversal would need to take the Tesla share price to above its late-March high at $184.25 on a weekly chart closing basis. While this is not the case, the Tesla share price remains in a downtrend as a series of lower highs and lows can be made out on the weekly chart. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Surprising US PMI drops contrast with Europe’s gains in services, pushing EUR/USD higher as markets recalibrate economic outlooks and monetary policy expectations. Source: Getty Forex Euro Pound sterling European Union Inflation EUR/USD Written by: Richard Snow | Analyst, DailyFX, Johannesburg Publication date: Wednesday 24 April 2024 07:28 Flash PMI data provides unflattering US outlook, Europe improves German and EU manufacturing remains depressed but encouraging rises in flash services PMI results suggest improvement in Europe. UK manufacturing slumped well into contraction, but also benefitted from another rise on the services front. It was the US that provided the most surprising numbers, witnessing a decline in services PMI and a drop into contractionary territory for manufacturing – weighing on the dollar. EUR/USD rises after us PMI shock EUR/USD responded to lackluster flash PMI data in the US by clawing back recent losses. The euro attempts to surpass the 1.0700 level after recovering from oversold territory around the swing low of 1.0600. The pair has maintained the longer-term downtrend reflective of the diverging monetary policy stances adopted by the ECB and the Fed. A strong labour market, robust growth and resurgent inflation has forced the Fed to delay its plans to cut interest rates which has strengthened the dollar against G7 currencies. The surprising US PMI data suggests the economy may not be as strong as initially anticipated and some frailties may be creeping in. However, it will take a lot more than one flash data point to reverse the narrative. If bulls take control from here, 1.07645 becomes the next upside level of interest followed by 1.0800 where the 200 SMA resides. On the downside, 1.06437 and 1.0600 remain support levels of interest if the longer-term trend is to continue. EUR/USD daily chart Source: TradingView EUR/GBP surrenders recent gains EUR/GBP rose uncharacteristically on Friday when risks of a broader conflict between Israel and Iran subsided. In addition, the Bank of England’s(BoE) Deputy Governor Dave Ramsden stated that he sees inflation falling sharply towards target in the coming months, sending a dovish signal to the market. Today the BoE’s chief Economist Huw Pill tried to walk back such sentiment, stressing that the bank needs to maintain restrictiveness in its policy stance. He did however, echo Ramsden’s remarks by saying the committee is seeing signs of a downward shift in the persistent component of the inflation dynamic. EUR/GBP appears to have found resistance around 0.8625 and has traded lower after the PMI data, even heading lower than the 200 SMA. A return to former channel resistance is potentially on the cards at 0.8578. Prices settled into the trading range as central bankers mulled incoming data and the prospect of a first rate cut appeared a fair distance away. Longer-term, the ECB is on track to cut rates in June, meaning sterling will extend its interest rate superiority and is likely to see the pair test familiar levels of support. EUR/GBP daily chart Source: TradingView This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Asian stocks, led by tech shares, rallied sharply on Wednesday as investors shifted focus to upcoming earnings from major US tech companies like Meta, Alphabet and Microsoft. Tesla's shares surged 12.5% after-hours as it promised new electric vehicle models, despite missing Q1 expectations. This boosted sentiment in Asia's tech sector. The Japanese yen remained depressed near 34-year lows against the US dollar around 154.85, keeping traders wary of potential intervention by Japanese authorities. Broad gains were seen across Asian markets like Taiwan, South Korea, Japan's Nikkei and the MSCI Asia-Pacific ex-Japan index. China and Hong Kong stocks were mixed. The risk-on rally is expected to extend to Europe with futures pointing to a higher open. Apart from tech earnings, markets are also eyeing US GDP and core PCE inflation data this week for clues on Fed rate path. US Treasury yields and the dollar index eased after data showed a cooling in US business activity and inflation pressures in April. The Australian dollar jumped on hotter-than-expected inflation data, prompting removal of rate cut bets for this year. Oil prices were largely flat as geopolitical tensions offset economic concerns.

Dow, Nasdaq 100 and Nikkei 225 make headway off recent lows The selling in indices has stopped for now, with major markets higher after finding at least a short-term low last week. Source: Getty Images Written by: Chris Beauchamp | Chief Market Analyst, London Publication date: Tuesday 23 April 2024 13:38 Dow recovery goes on The index continues its recovery from the lows of last week, and Monday’s session saw it move back above the 100-day simple moving average. The flood of major earnings over the coming two weeks may mean that the index experiences a more volatile period, even if it does continue to rebound. Further gains target 39,000, which provided some resistance earlier in the month, and then on to 40,000. A close back below 38,000 could suggest the price will head back towards 37,500, retesting last week’s low. Source: ProRealTime Nasdaq 100 braces for big tech earnings The pullback in the index paused yesterday, as the price reached 17,000. A small gain helped to suggest that a low may be forming. The big tech earnings that dominate this week and next may mean that the index struggles in the short-term, though with the percentage of index members below their 20-day SMA hitting 5% last week a short-term bounce still seems likely. A close above 17,415 and the 100-day SMA helps to build a short-term bullish view. Sellers will want to see a close back below 17,000, which could then open the way to the January low at 16,177. Source: ProRealTime Nikkei 225 returns to 100-day SMA As with other indices, the Nikkei 225 has seen its pullback pause over the past three sessions. Buyers appeared last week when the index dropped below 37,000, and the index then pushed back to the 100-day SMA. A close above the 100-day SMA would add strength to the bullish view, while the price then targets the early April highs around 39,860. 37,000 continues to hold as support for now, so a break below here is needed to put the bearish view back on track. Source: ProRealTime

While the price of crude oil stabilises, gold and silver prices fall sharply De-escalation in the Middle East leads to risk on sentiment and flows out of save haven commodities such as precious metals. Source: Getty Images Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Tuesday 23 April 2024 13:23 Brent crude oil price recovers slightly from near one-month low The Brent crude oil price’s sharp decline from its 91.67 mid-April high to Monday’s 85.21 near one-month low amid de-escalation in the Middle East has been followed by a minor bounce which so far remains tepid and below the 87.11 mid-March high, though. Were 85.21 to give way, the key mid-November-to-early March previous resistance area, now because of inverse polarity a support zone, at 84.58 to 83.79 would probably be tested. Source: ProRealTime Gold price plunges to three-week low as geopolitical tensions ease Spot gold is on track for its second straight day of losses, having so far fallen by around 5% from its mid-April $2,431 per troy ounce record high, as tensions in the Middle East ease. A potential downside target is seen at the 5 April low at $2,268. If fallen through, a more significant correction might take the precious metal price to its 20 March $2,223 high. Minor resistance sits between its mid-April low and Tuesday’s intraday high at $2,335. Further minor resistance can be spotted at the 17 April $2,354 low. Source: ProRealTime Silver price comes off its three-year high The spot silver price is seen coming off its $29.79 per troy ounce mid-April high, a level last traded in February 2021, towards its 5 April low and the February-to-April uptrend line at $26.29 to $26.16 as geopolitical tensions in the Middle East abate. Another potential downside target is the 21 March high at $25.77. Minor resistance above Tuesday’s intraday high at $27.36 can be seen at the 10 April low at $27.53. Source: ProRealTime

Monday’s session saw the FTSE 100 finally reach a new record high, joining its peers which saw fresh peaks earlier in the year. Source: Getty Forex Indices Shares FTSE 100 Federal Reserve Pound sterling Written by: Chris Beauchamp | Chief Market Analyst, London Publication date: Tuesday 23 April 2024 10:22 FTSE 100 hits new peak as rate cut hopes boost index Monday’s session saw the FTSE 100 finally reach a new record high, joining its peers which saw fresh peaks earlier in the year. FTSE 100 closes at record after broad up day for UK stocks The UK's premier FTSE 100 stock index hit an all-time closing high on Monday, with the blue-chip benchmark surging 1.6% to finish at 8,023.9 points. The rally was broad-based across most index constituents. Weaker pound helps boost UK exporters A key factor driving the FTSE 100's record close was the renewed weakness in the British pound versus the U.S. dollar. Sterling slumped 0.3% to $1.2333, its lowest since mid-November. With most FTSE 100 companies earning the majority of their revenues overseas, the weaker pound boosted their relative valuations. Diverging rate outlook for Fed and Bank of England Market expectations are building for the Bank of England (BoE) to start cutting interest rates as soon as August. This contrasts with views that the U.S. Federal Reserve (Fed) will keep rates higher for longer. The diverging rate outlook between the BoE and Fed is seen as benefiting the globally-exposed FTSE 100 index. New highs come despite cheaper valuations Even after setting a new all-time closing peak, UK stocks continue to trade at a record discount to their peers like the S&P 500. This depressed valuation gap reflects years of underperformance by British equities relative to other major markets. UK companies continue to be snapped up by foreign investors, with engineer Tyman agreeing to a takeover on Monday and other major names in focus. Energy and bank stocks support FTSE 100 gains Sector boosts from rising oil prices lifting energy giants like Shell, as well as gains for UK bank stocks amid an emerging economic recovery, have helped drive the FTSE 100's recent rally to new highs. FTSE 100 technical analysis The FTSE 100 finally managed to overcome its previous record high dating back to February of last year and is fast approaching the 8,100 mark. Since over the past decade the index several times fell just short of the psychological 8,000 mark, the question is whether this time round a valid break above that level has finally been made. For now at least, the index seems to be on track for its third consecutive month of gains. This is encouraging for the bulls as it shows consistent buying pressure. FTSE 100 Monthly Candlestick Chart Source: TradingView A technical upside target can be found at the 161.8% Fibonacci extension of the March-to-June 2020 advance, projected higher from the October 2020 low, at 8301.90. This bullish view will remain intact while the 200-day simple moving average (SMA) and the 2020-to-2024 uptrend line at 7,597.9 to 7,582.1 underpin on a weekly chart closing basis. Immediate upside pressure should be maintained while the FTSE 100 stays above Friday’s one-month low at 7,748.8 on a daily chart closing basis. FTSE 100 Daily Candlestick Chart Source: TradingView Minor support above these levels can be seen between the 8,016.5 early April high and the psychological 8,000 mark. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

As Amazon gears up to release its Q1 2024 earnings on April 30, market watchers are eyeing potential growth in AI technology, cost-cutting measures, AWS expansion, and advertising revenues. Written by: Tony Sycamore | Market Analyst, Australia Publication date: Tuesday 23 April 2024 05:45 When will Amazon report its latest earnings? Amazon is expected to report its first quarter (Q1) 2024 earnings after the market closes on Tuesday, 30 April, 2024. Amazon: a titan among the Magnificent Seven Amazon is an American multinational technology company specialising in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It is a member of the so-called "Magnificent Seven", along with Tesla, Microsoft, NVIDIA, Apple, Meta, and Alphabet. In its Q4 2023 earnings report, Amazon surpassed Wall Street's expectations, resulting in its share price surging 8% higher in after-hours trading. The company reported revenues of $170 billion in the fourth quarter, 14% higher than the $149.2 billion reported in the fourth quarter of 2022. The company reported EPS of $1.00 per share, beating market forecasts of $0.80, significantly exceeding reported EPS of $0.03 in the fourth quarter a year earlier. "This Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon," said Andy Jassy, Amazon CEO. "As we enter 2024, our teams are delivering at a rapid clip, and we have a lot in front of us to be excited about." Amazon projects robust sales growth and profitability in Q1 2024 guidance Source: Amazon Amazon's key financials Slowing revenues Current Quarter (Q1 2024): $142.53 billion Previous Quarter (Q4 2023): $170.00 billion EPS takes a dip Diluted EPS Q1 2024: $0.83 Diluted EPS Q4 2023: $1.00 Amazon sales revenue Source: TradingEconomics Andy Jassy's vision for Amazon: what to watch for? Amazon embraces the AI revolution Jassy mentioned AI and Gen AI more than 30 times in his letter to shareholders earlier this month, noting that "Generative AI may be the largest technology transformation since the cloud – which itself is still in the early stages – and perhaps since the internet." As such, there will be keen interest in seeing how Amazon continues integrating and utilising AI technology within its business and product offerings and the potential it can create for shareholders. Jassy's cost-cutting crusade After overspending during the pandemic, Jassy is expected to continue cutting costs, specifically in the fulfilment and logistics division. "As we look toward 2024 (and beyond), we're not done lowering our cost to serve. We've challenged every closely held belief in our fulfilment network, and re-evaluated every part of it and found several areas where we believe we can lower costs even further while also delivering faster for customers." Riding the AI wave: AWS's growth trajectory Last quarter, revenue for the AWS segment increased by 13% year-on-year. There will be keen interest in seeing that rate of growth maintained in this AI-heavy area of Amazon as more businesses shift their data storage to the cloud. Prime video and sports: the advertising goldmine Amazon's Advertising revenue increased by 24% year over year in 2023 to $47 billion from $38 billion in 2022. Shareholders will look for continued strong growth in this area powered by various measures, including incorporating advertisements into Prime Video Shows and Movies and live sports. The rise and fall of Amazon's cashier-less dream Amazon's cashier-less technology, designed to help shoppers skip the line, was intended to reshape the future of retail. However, shoppers appeared uncomfortable using the technology. While Amazon has announced that they are walking back the technology, there will be interest in seeing what plans the company has for the technology already developed. Amazon's 2023 letter to shareholders Source: Amazon Amazon technical analysis In a move that took almost three years to complete, Amazon's share price recently reached a new all-time high after dropping more than 55% from its July 2021 high of $188.65. Amazon's ascent to new highs was driven by an 18% increase in the share price during the first quarter of 2024 - a performance that exceeded the tech-heavy Nasdaq, which saw a more modest 8.50% rise during the same timeframe. Amazon weekly chart Source: TradingView The daily chart below illustrates that after an 8% jump in early February (following its Q4 2023 earnings report), Amazon's share price recently surged to new highs, propelled by a bullish trend channel. Looking ahead, bullish trend channel resistance lies at around $192, which would be a logical spot for profit-taking type sell orders. On the downside, initial support is identified at $170, where we would expect dip buyers to step in, ahead of more significant support at the lower boundary of the trend channel, coming in at around $148.00. Amazon daily chart Source: TradingView Source TradingView. The figures stated are as of 17 April 2024. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation. This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Upcoming McDonald's earnings on April 30th could signal key shifts in market dynamics, with investors eyeing potential impacts of inflation, geopolitical concerns, and competitive challenges. Source: Getty Shares McDonald's Fast food Franchising Relative strength index Inflation Written by: Monte Safieddine | Market analyst, Dubai Publication date: Tuesday 23 April 2024 02:14 When will Tesla report its latest earnings? If you're craving a Big Mac on Tuesday, April 30, it might be because that's when McDonald's Corporation is expected to release its figures for the first quarter of this year. A snapshot of last quarter's performance Hopes are it won’t be mixed results as we saw in the final quarter of last year where it outperformed on earnings per share at $2.95 versus $2.82 forecasts but suffered a slight miss on revenue at $6.41 billion instead of the $6.45 billion expectations. McDonald's and the changing tides of fast-food consumption In the past, it was a story of snatching market share from pricier chains when the cost of living rose significantly, but it has since begun to impact even fast-food companies. Polling from Revenue Management Solutions back in February painted a picture of low-income consumers cutting back on fast food, and at times avoiding it altogether, instead of merely reducing consumption at the franchise. That has meant concern over receiving less from budget-conscious consumers, and pushing more into that camp where previously it had been more about tastes and preferences. Inflation has generally been moderating, but slight panic is resurfacing once more that controlling it in the next phase will be a more challenging task. And focusing on the state of California, prices are expected to be higher for the current quarter after the minimum wage increase to $20 at the start of this quarter, as leaders in the industry said they’d adapt to incorporate the higher costs, even if for some it’ll be up to their respective franchisees. McDonald's ambitious leap towards 50,000 restaurants Higher costs in general will be observed and not just in the Golden State. There's also how it's faring on its expansion plans to reach 50,000 with the majority of capital expenditures on opening new restaurants, whether in the US or abroad, any update on evaluating its spinoff CosMc's, and the tie-in with Krispy Kreme going nationwide that benefited the doughnut maker’s share price significantly when it was announced, with little effect on McDonald’s share price. Those in the food industry have always sought further clarity regarding the impact of weight loss drugs, given the intent is on reducing appetite and feeling full for a longer period. Geopolitical concerns and revenue impact Then there’s the geopolitical angle. The ongoing boycott in the Middle East and its impact on sales in the final quarter of last year, and not just in the region but in other countries as well. It’s expected to have “a negative impact…as long as the war continues,” according to its regulatory filing back in February, which resulted in the announcement earlier this month about acquiring all of its Israeli franchise restaurants. For now, reliance will remain high on its core regions where the US is well on top by a big margin followed by Japan and China, and the extent to which the slower start to the year on weather woes can play a larger role in reducing customer traffic. How does McDonald's stack up against Chipotle and Domino’s Pizza? Looking at the competition, there have been stellar gains over the past year for Shake Shack's share price (up over 70%), Chipotle (nearly 60%), and Domino's Pizza (by over 40%), while McDonald’s is down by 7%. That means while its established brand and strong balance sheet might have been a plus when investors became defensive preventing its share price from falling too heavily when the AdvisorShares Restaurant ETF was in retreat, it hasn’t been able to come close to matching the rest of the industry when they are enjoying double-digit percentage gains. Source: Getty McDonald’s forecasts from Q1 results In all, expectations this time around are for an earnings per share of $2.72, higher than the same period last year at $2.63 but quarter-on-quarter experiencing another consecutive drop, and an estimate that has been revised higher recently. Revenue is expected at around $6.2 billion, above 2023's Q1 $5.9 billion but below the three quarters that followed. Gross profit margin is anticipated to improve, and there's also the potential for a small dividend hike (source: LSEG). As for recommendations, the majority remain in the 'buy' category, with none opting for an 'underperform' or 'sell'. Eight analysts are advancing into 'strong buy' territory, 19 are opting for a 'buy', and eleven suggest a 'hold'. Regarding their price targets, the average among them of $324 is above the current share price (source: LSEG). Trading McDonald’s Q1 results: technical overview and trading strategies Examining the weekly chart and dissecting the primary technical indicators individually reveals the price positioned below most of its main weekly moving averages, close to the lower end of the weekly Bollinger Bands. The DMI (Directional Movement Index) is negative, with a considerable margin between the DI- over the DI+, and the RSI (Relative Strength Index) indicator still not reaching oversold territory. Additionally, the ADX (Average Directional Movement Index) is below the ranges indicative of trending movements. The daily timeframe indicates a deteriorating technical outlook. Given this analysis, it's understandable why determining a technical overview in these circumstances becomes more complex for the long-term weekly perspective, whereas, for the daily perspective, a 'bear average' appears more apparent. For those predicting the persistence of this overview (and its bear channel), selling strategies may be considered, whether through a significant reversal from the weekly 1st Resistance or a breakout from the first Support. The increased volatility in this current phase, triggered by the upcoming fundamental release, could necessitate adjustment to strategies, perhaps shifting focus to secondary levels depending on how significantly the results diverge from expectations. Source: IG McDonalds weekly chart with key technical indicators Source: TradingView IG Client sentiment* and short interest for McDonald’s shares When it comes to sentiment amongst retail traders (image below), the bias has been extreme buy and has risen over the past two weeks to 91% as of this morning from 80% prior. Short interest on the exchange was somewhat rangebound for a few years and beneath 1% of shares float, but over the past two quarters has started trending higher with the latest print at over 8 million representing 1.12% of shares float (source: LSEG). Source: IG *The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am for the outer circle. Inner circle is from April 2, 2024. This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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Now that the Bitcoin halving event is over, investors are keen to know how this will impact the cryptocurrency’s price and dynamics in the coming months. Written by: Angeline Ong | Financial Analyst, Presenter and Content Editor, London Publication date: Monday 22 April 2024 14:02 ByteTree CIO Charlie Morris speaks to IGTV’s Angeline Ong to explain why this event was the ‘great anti-climax’ in the crypto world, and why this event perhaps presents a long awaited entry point for those wanting to gain exposure to Bitcoin. (AI Video Summary) Impact of the Bitcoin halving event In this exclusive IGTV interview, Angeline Ong and ByteTree CIO Charles Morris analyse the Bitcoin halving, emphasising its reduced supply effect and potential for price increases due to decreased miner selling pressure. Morris suggests the halving's aftermath offers a promising entry point for investors, citing historical post-halving strengths. Bitcoin's correlation with tech stocks He also discusses Bitcoin's correlation with tech stocks, regulatory perspectives, and its inevitability as a sustainable asset class, akin to "the gold of the Internet." Morris concludes by highlighting Bitcoin's necessity for fast, round-the-clock financial systems, contrasting traditional banking. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

The BoJ is set to hold their monetary meeting across 25 – 26 April 2024. Source: Getty Forex Bank of Japan Inflation Bank Japanese yen Bond Written by: Yeap Jun Rong | Market Strategist, Singapore Publication date: Monday 22 April 2024 11:51 Previous March meeting marked a historic policy shift The BoJ is set to hold their monetary meeting across 25 – 26 April 2024. At the previous meeting, the BoJ raised its key short-term interest rate from -0.1% to a range of 0% - 0.1% for the first time in 17 years. The central bank also removed its yield curve control (YCC) policy and scaled back its asset purchases – ending purchases of equity exchange traded funds (ETFs) and J-REITs but will continue to purchase Japanese Government Bonds (JGBs) with “broadly the same amount as before”. The policy shift ensued from a stronger-than-expected outcome in this year’s annual wage negotiations (shunto), which validated hopes that a virtuous wage-price spiral could bring its ‘sustainable and stable 2% inflation’ target in sight. Japan’s biggest companies agreed to raise wages by 5.28% for 2024, its highest in 33 years. However, markets were also quick to take notice of the BoJ’s dovish language around further tightening, which anchored views for a more gradual pace of policy normalisation. With some reservations around economic risks, the central bank guided that it “anticipates that accommodative financial conditions will be maintained for the time being”. Source: Refinitiv What to expect at the upcoming BoJ meeting? At the upcoming meeting, the BoJ is widely expected to keep policy settings on hold, having previously indicated patience in its future policy assessments while a back-to-back policy shift may seem overly aggressive. Current rate expectations are leaning for further rate adjustment only in the July or September meeting. Source: Refinitiv, as of 19 April 2024. Focus to be on BoJ’s quarterly outlook report and press conference Focus for the upcoming meeting will be on the BoJ’s quarterly outlook report. Eyes will be on how the weaker yen and surging oil prices in recent months will raise the bar on its inflation outlook, which will set expectations for the central bank’s next rate move. Market chatters are for FY2025 core inflation forecast to be raised from 1.8% to 2.0%. The first forecast for FY2026 will also be unveiled, which is expected to be at around 2%. While Japan’s inflation has cooled slightly in March (core: 2.6% vs 2.8% prior, headline: 2.7% vs 2.8% prior), pricing pressures continue to run above the central bank’s 2% target for the second year running, which may support further policy normalisation efforts. Recent comments from the BoJ Governor Kazuo Ueda have laid the groundwork, guiding that the central bank is "very likely" to raise interest rates if underlying inflation continues to go up, and will begin reducing its huge bond buying at some point in the future. Any wording shift in the press conference on close watch as well At the previous meeting, the BoJ Governor’s justification to keep accommodative monetary conditions in place was that ‘there is some distance for inflation expectations to reach 2%’. With any upward revisions in the upcoming inflation forecasts, market participants will be watching for any shift in wordings from the Governor in the upcoming press conference. USD/JPY: FX intervention remains on watch Rising US-Japan bond yield differentials has paved the way for USD/JPY to touch its highest level since 1990, with the pair breaking above its previous forex (FX) intervention level (October 2022) around the 150 - 152 level. While Japan authorities have been stepping up intervention warnings lately, with Finance Minister Shunichi Suzuki recently saying that authorities “would take appropriate actions against excessive movements”, the lack of any concrete follow-through seems to point to some tolerance and spur views that it may be just jawboning to limit the decline in the yen. Nevertheless, any signs of intervention will remain on watch and drawing reference from 2022, the amount of yen-buying may determine if a top is seen. Near-term, an upward trendline seems to serve as a previous support-turned-resistance line for the pair, with buyers potentially facing a test of resistance at the 154.80 level. While daily relative strength index (RSI) is pointing to near-term oversold conditions, further rise in US Treasury yields may keep the pair supported. In the event of a retracement, the 153.00 level may be on watch as immediate support to hold. Source: IG charts Nikkei 225: Correction territory being tested The unwinding in the broader risk environment, particularly in rate-sensitive tech, has dragged the Nikkei 225 index into technical correction territory, falling by as much as 10.7% over the past one month. While the index is attempting to stabilise into the new week, sentiments remain weak for now, with its daily RSI dipping to its lowest level since December 2023. Near-term, the 36,700 level (last Friday’s low) may serve as immediate support to hold, with any subsequent breakdown potentially paving the way towards the 35,700 level next. On the upside, the 38,000 level will be on watch, where a resistance confluence stands from an upward trendline and its daily Ichimoku Cloud. Source: IG charts This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

EUR/USD stabilizes while EUR/GBP rallies and GBP/USD tumbles on dovish BoE comments regarding rapidly falling inflation. Source: Getty Images Forex United States dollar Pound sterling EUR/USD GBP/USD EUR/GBP Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Monday 22 April 2024 10:13 EUR/USD stabilizes EUR/USD is now range trading between its key $1.069 to $1.0725 resistance zone and last week's $1.0601 low. Below it lies the 78.6% Fibonacci retracement of the October-to-December advance at $1.0596 and further down the late October lows at $1.0522 to $1.0517 as well as the $1.0449 October low. All of these remain medium-term in sight. Source: TradingView.com EUR/GBP sees sharp rally EUR/GBP has swiftly risen above the 200-day simple moving average (SMA) at £0.8605 and reached the October low at £0.8617 which acts as resistance. If bettered, the £0.8630-31 mid-September high and late September low will be in focus. Slips to below the 200-day SMA should find support around the March high at £0.8602. Below it lie the 5 to 9 April highs at £0.8586-82. Source: TradingView.com GBP/USD tumbles further GBP/USD resumed its descent and nears the 61.8% Fibonacci retracement of the October-to-March rise at $1.2365. Further down sits the mid-October high at $1.2338. Minor resistance can be spotted at last Tuesday's $1.2406 low. Source: TradingView.com This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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Gold and oil prices volatile after Middle East news, while natural gas price moves higher for a fourth day News of a possible Israeli counter-strike against Iran lifted oil and gold prices before both rapidly retreated, while natural gas is continuing to edge higher. Source: Bloomberg Written by: Chris Beauchamp | Chief Market Analyst, London Publication date: Friday 19 April 2024 10:48 Gold knocked back from $2400 again Gold prices once again attempted to clear $2400, but ran into selling pressure for the second time. This pause to upward progress might signal that some short-term weakness is at hand, though there is at present little sign of any renewed downside. Buyers need a a close above $2400 to open the way to additional upside. Source: ProRealTime Brent spikes on Middle East tensions Oil prices had been under firm pressure in the previous two days, but spiked higher on news of a possible Israeli strike in Iran. The limited nature of the strike, and the muted Iranian response, meant that the price could not sustain gains, and the price fell back from its highs. However, if the $86 low can hold from Thursday then a short-term move higher may develop, particularly if tensons in the Middle East continue to rise. Source: ProRealTime Natural Gas moves higher Natural gas prices have edged higher over the past four sessions, rallying off the 50-day SMA. Further gains would target the $2000 level, and then on the 100-day SMA at $2138. A more bearish view would require a close back below the 50-day SMA. Source: ProRealTime

FTSE 100, DAX 40 and S&P 500 drop on Israel retaliatory strike on Iran Outlook on FTSE 100, DAX 40 and S&P 500 as investors fret about escalating tensions in the Middle East. Source: Bloomberg Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Friday 19 April 2024 10:34 FTSE 100 stabilizes following sharp out-of-hours drop The FTSE 100 dropped like a stone to its late February high at 7,751 as Israel fired missiles at Iran in a retaliatory attack in out-of-hours trading. Even though the index still opened lower, it has so far regained the majority of its intraday losses as hopes that further escalation will not take place become more prevalent. While no rise above Thursday’s high at 7,899 is seen, though, the FTSE 100 remains under pressure and may revisit Tuesday’s low at 7,794. Minor resistance sits at the early April 7,856 low. Source: ProRealTime DAX 40 drops to levels last seen in February The DAX 40 fell to levels last traded in late February when it hit the 17,400 mark on Middle East escalation as Israel launched missiles at Iran. The index is trying to heave itself above the 55-day simple moving average (SMA) at 17,715 which may act as resistance with the 17,711 low seen on Tuesday. Further resistance sits at last Friday’s 17,831 low. For the bulls to even short-term be in control again, a bullish reversal and rise above Tuesday’s high at 17,903 needs to ensue. Support is found at the 7 March 17,619 low and the 50% retracement of the mid-January to April advance. Source: ProRealTime S&P 500 slips to two-month low The S&P 500 is on track for its third consecutive week of losses as it hit levels last traded in mid-February at 4,927 amid a retaliatory missile strike by Israel on Iran. The index is trying to remain above this low but will now have the psychological 5,000 mark to contend with which should act as resistance. Further up the mid-February high at 5,049 may also act as resistance. Below today’s intraday low at 4,927 lies the 4,920 mid-February low. Source: ProRealTime

Trading volatility: DXY on US Q1 GDP With the US economy seemingly able to cope with relatively high US interest rates there’s the potential for this coming week's US GDP reading for Q1 to be strong. Written by: Jeremy Naylor | Analyst, London Publication date: Friday 19 April 2024 10:08 If this comes to pass there will inevitably be a long trade to be had around the US dollar. IGTV’s Jeremy Naylor looks at likely levels which may be key. The data is out on Thursday 25 April. (AI Video Summary) U.S. GDP data Anticipation of strong U.S. GDP data for the first quarter, expected to affirm the resilience of the U.S. economy amid high interest rates. This optimism is reflected in the forecast of the U.S. dollar's strength, particularly noted in the dollar basket's potential movement. Traders are advised to watch for a break above 106.19 in the dollar basket, suggesting a move to 106.98 on a robust GDP outcome. This analysis is tied to expectations that the Federal Reserve may maintain its hawkish stance on interest rates to combat inflation, impacting dollar positions and providing key insights for financial enthusiasts interested in currency markets and economic indicators. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Alphabet's integration of generative Artificial Intelligence (AI) into search and ads services, as well capital expenditure will likely be a key focus for investors. Shares Alphabet Inc. Artificial intelligence Price Revenue Share price Written by: Shaun Murison | Senior Market Analyst, Johannesburg Publication date: Friday 19 April 2024 10:02 Key takeaways: Earnings Expectations: Alphabet Inc. will release its Q1 2024 earnings on April 25th, with analysts projecting revenues of $69.787 billion and earnings per share (EPS) of $1.89. Revenue Diversification and Challenges: Despite a flat performance of its services segment being expected, Alphabet is seeing significant growth in its cloud computing division Market Focus on AI: Markets are particularly keen on understanding Alphabet's strategy and progress in integrating generative Artificial Intelligence (AI) into its search and advertising services. Stock Price Analysis: Alphabet’s Class C shares have an average 12-month price target of $168.64 among analysts Technical Outlook: Alphabet’s stock remains in a long-term uptrend but is undergoing a short term correction thereof When are the Alphabet results? Alphabet Inc. is set to report Q1 2024 earnings on the 25th of April 2022. What ‘the Street’ expects from Alphabet Q1 2024 results? A Refinitiv poll of analyst estimates (as of the 18th of April 2024) arrives at the following: Revenue for the quarter of $69.787bn Earnings per share for the quarter of $1.89 Googles services segment remains the largest contributor to revenue ($61.961bn expected) and is expected to be roughly flat year on year. Googles cloud segment is forecast to be the growth driver for the group adding around 28% y/y revenue growth reaching a figure of $7.546bn. The groups ‘other bets’ division, is expected to see a 35% contraction in its revenue contribution to group at around $288m. Markets will be looking for further news around the company’s involvement and integration of generative Artificial Intelligence (AI) into search and ads services. Capital expenditure will likely also be a key focus relative to investment into cloud and AI, and in lieu of recent cost cutting initiatives. How to trade Alphabet results Source: IG TipRanks Based on 11 Wall Street analysts offering 12 month price targets for Alphabet Class C in the last 3 months. The average price target is US$168.64 with a high forecast of US$185.00 and a low forecast of US$160.00. The average price target represents a 7.50% change from the last price of US$156.87. Source: IG 89% of IG client accounts with open positions on Alphabet as of the 18th of April 2024, expect the price to rise in the near term, while 11% expect the price to fall. Alphabet (Class C) share price – technical view Source: IG The share price of Alphabet Inc. remains in a long-term uptrend. In the near term we are seeing a correction of this uptrend from recent highs and overbought territory. Trend followers might wait for weakness to play out before looking for long entry in line with the longer-term uptrend. Confirmation that the short-term correction has ended, and that the longer-term uptrend is resuming might be considered on a bullish price reversal closer towards either the 149.90 or 142.30 support levels. In this scenario channel resistance provides a longer-term upside target of around 166.40. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.