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Dow Jones Rebounds on Eased Ukraine Tensions, APAC Shares Might Advance


DOW JONES, NIKKEI 225 INDEX, CRUDE OIL, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 indexes closed +1.22%, +1.58% and +2.47% respectively
  • Threat property rebounded sharply as Russia-Ukraine standoff confirmed indicators of easing
  • Asia-Pacific equities look set to open greater, with traders eyeing China inflation andUS retail gross sales figures

Dow Jones, Ukraine, Crude Oil, Inflation, Asia-Pacific at Open:

The Dow Jones Industrial Common rebounded on Tuesday as traders shrugged off Russia-Ukraine tensions after Moscow mentioned that a few of its troops have been returning to their bases. This got here after the US warned about an imminent invasion on the finish of final week, which resulted in a broad pullback in threat property. The De-escalation of the Ukraine disaster boosted investor confidence and despatched shares greater in a single day, setting a optimistic tone for Asia-Pacific markets at open. The know-how sector (1.90%) outperformed, whereas the vitality sector (-1.76%) trailed behind as crude oil prices fell.

Secure-havens, such because the US Dollar, Treasuries and gold declined in a single day, exhibiting cooled urge for food for anti-risk property. They nonetheless stay in focus as President Joe Biden mentioned the US has but to confirm Moscow’s declare and an invasion stays doable.

Amid a comparatively quiet occasion calendar this week, traders will scrutinize Wednesday’s launch of Chinese language inflation and US retail gross sales figures. China CPI and PPI are anticipated to average additional to 1.0% and 9.5%, from 1.5% and 10.3% respectively in December. Each readings have fallen from their latest peaks, permitting the PBOC to ease financial coverage to cushion a slowing economic system. The central financial institution injected 300 billion Yuan of liquidity through the issuing of 1-year MLF notes whereas preserving the rate of interest unchanged at 2.85%on Tuesday.

US retail gross sales development is anticipated to hit 2% MoM in January, in comparison with a decline of 1.9% in December. A stronger-than-expected print could enhance investor confidence and strengthen the case for Fed tightening, whereas a weaker determine could result in the alternative.

Crude oil costs fell 2.8% in a single day as eased Ukraine tensions alleviated considerations about potential provide disruption between Russia and the European Union. Vitality was the worst-performing sector within the Dow Jones in a single day. Oil costs pulled again from 7-year highs however nonetheless stay in a powerful upward trajectory, underpinned by demand optimism and provide constraints.

Crude Oil Worth – Day by day

Dow Jones Rebounds on Eased Ukraine Tensions, APAC Stocks May Advance

Chart created with TradingView

Asia-Pacific markets look set to open greater. Futures in Japan, mainland China, Hong Kong, Australia, Taiwan, Singapore, India, Thailand and Indonesia are within the inexperienced. These in South Korea and Malaysia are within the crimson.

Trying again to Tuesday’s shut, Eight out of 9 Dow Jones sectors ended greater, with 86.7% of the index’s constituents closing within the inexperienced. Communication providers (+1.94%), info know-how (+1.90%) and industrials (+1.77%) have been among the many greatest performers, whereas vitality (-1.76%) lagged behind.

Dow Jones Sector Efficiency 16-02-2021

Dow Jones Rebounds on Eased Ukraine Tensions, APAC Stocks May Advance

Supply: Bloomberg, DailyFX

Dow Jones Index Technical Evaluation

The Dow Jones Industrial Common rebounded from a key help degree of 33,830 after the completion of a bearish “Butterfly” chart sample. Costs have since developed a “Double Prime” sample that signifies a possible bearish pattern reversal. A direct help degree will be discovered at 34,500 – the 78.6% Fibonacci retracement, breaching which can carry 33,830 in sight. The MACD indicator is about to type a bearish crossover beneath the impartial midpoint, suggesting that momentum stays weak.

Dow JonesIndex – Day by day Chart

Dow Jones Rebounds on Eased Ukraine Tensions, APAC Stocks May Advance

Chart created with TradingView

Nikkei 225 Technical Evaluation:

The Nikkei 225 index breached under a “Symmetrical Triangle” sample and thus opened the door for additional draw back potential. Costs have rebounded final week, however the general pattern stays bearish-biased. The decrease trendline of the “Symmetrical Triangle” has now develop into rapid resistance. The MACD indicator is trending decrease, underscoring bearish momentum.

Nikkei 225Index – Day by day Chart

Dow Jones Rebounds on Eased Ukraine Tensions, APAC Stocks May Advance

Chart created with TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index returned to the range-bound zone between 7,200 and seven,500, driving a powerful technical upswing. Costs have pulled again to the ground of the vary in search of rapid help. The MACD indicator fashioned a bullish crossover beneath the impartial midpoint, suggesting {that a} technical rebound is underway.

ASX 200 Index – Day by day Chart

Dow Jones Rebounds on Eased Ukraine Tensions, APAC Stocks May Advance

Chart created with TradingView

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part under or @margaretyjy on Twitter





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