Equities start the year positive, hoping for a better year
Dow Jones index
It was a quiet end to the year as the equity markets finished a poor year. However, last Friday's showed employment growth and slower wage inflation which saw the Dow start the year positively.
This week the focus will be Thursday's inflation figure. This year's most important economic data will continue to be inflation, and the market will be hoping for slower inflation.
The equity market is looking for a positive 2023, so we expect the market to test higher this week. However, higher-than-expected inflation figures could see a resumption of the bear market and a significant fall in the Dow Jones index.
Resistance：34000, 34500, 35000, 35500, 36000, 36500
Support：33250, 33000, 32800, 32500, 32000
Nikkei 225 index
The Nikkei has been under pressure recently from the stronger Yen weakening sentiment. However, the market has held support at recent lows, and the Yen is starting to weaken again, which is positive.
Now the Nikkei has broken above the 10-day moving average, so further gains are most likely in the short term. Moreover, the resumption of tourism is improving sentiment and could help the stock market.
Resistance：26500, 26650, 27000, 27500, 28500
Support：26000, 25600, 25000, 24500