NASDAQ Composite (.IXIC) Launches ESG futures in the Nordics

NASDAQ Composite (.IXIC) Launches ESG futures in the Nordics

NASDAQ Composite (.IXIC) Launches ESG futures in the Nordics

Nasdaq (Nasdaq:NDAQ) today announced the launch of futures based on the recently launched OMXS30 ESG Responsible index (OMXS30ESG). The product is the first exchange listed and ESG compliant index future in the world.

“In recent years we have seen institutions increase efforts to integrate sustainability into their investment strategies, with the Nordic region being in the forefront of this trend,” says Alessandro Romani, Head of European Equity Derivatives at Nasdaq. “Those looking to invest in a more sustainable way need more investment products based on established and liquid indexes. Our existing OMXS30 index future contract is among the most traded in Europe and we expect to see the same interest for the ESG version.”

The OMXS30ESG Index was developed in cooperation with a number of leading Nordic asset managers, including Swedbank Robur.

“At Swedbank, innovation and constant development are an important part of the business, and it is in our interest to participate in and influence product development. Sustainability screening is applied in more and more funds, and we see a great need from our customers that we have sustainable investments – therefore we are pleased to see that Nasdaq is being responsive for customer needs and we think the OMXESG will be successful,” says Magnus Linder, responsible for derivative trading at Swedbank Robur.

The OMXS30ESG Index and the Futures tracking it are the latest in a number of recent Nasdaq Nordic initiatives aimed at making it easier for investors of all sizes to invest and manage risk in a more sustainable way. In March 2017, Nasdaq launched an ESG reporting guide for listed companies in the Nordic and Baltic region, followed by a one year ESG pilot program, where Nasdaq guides 36 participating companies on how to report on ESG. This year, the Nasdaq Sustainable Bond Market, the world’s second largest in terms number of bonds listed, was expanded into Finland while a segment for sustainable bonds aimed also at retail investors was launched in Sweden.

The OMXS30ESG Futures are available for trading on Nasdaq Stockholm starting today. Nasdaq is planning to launch corresponding ESG indexes for its two other Nordic benchmark indexes, the OMXC25 in Denmark and the OMXH25 in Finland in the near future.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 7,765.10.

The projected upper bound is: 7,706.16.

The projected lower bound is: 7,275.40.

The projected closing price is: 7,490.78.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold (which appears to be the case with NASDAQ COMPOSITE) to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend (which appears to be the case with NASDAQ COMPOSITE) it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 16.1399. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 32.44. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -126.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 167.833 at 7,496.894. Volume was 22% above average (neutral) and Bollinger Bands were 118% wider than normal.

Open High Low Close Volume___
7,507.8367,516.6907,368.3267,496.894 655,728,768

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 7,745.19 7,902.92 7,503.34
Volatility: 30 18 21
Volume: 647,325,568 546,097,216 528,194,784

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NASDAQ COMPOSITE is currently 0.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .IXIC and have had this outlook for the last 6 periods.

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