Nasdaq 100 Falls Forward of US CPI as Treasury Yields Rise, Cling Seng Index at Danger

Nasdaq 100, Cling Seng, Treasuries, US CPI, Technical Evaluation – Asia Pacific Indices Briefing

  • Nasdaq 100, S&P 500, Dow Jones underperform within the wake of non-farm payrolls knowledge
  • Labor provide points underscored inflationary pressures, commodity costs rose on Monday
  • Cling Seng Index weak as markets await Wednesday’s US CPI print, Treasury yields rise

Monday’s Wall Avenue Buying and selling Session Recap

Equities on Wall Avenue ended Monday broadly decrease, with near-even losses seen between the three main benchmark inventory indices. The Nasdaq 100, Dow Jones and S&P 500 (futures) closed -0.72%, -0.69% and -0.71% respectively. It was a reasonably quiet session with few financial occasion threat. The U.S. Columbus Day vacation left bond markets closed, although inventory markets have been buying and selling.

The deterioration in sentiment might have been a continuation of the market response to final week’s non-farm payrolls report. A miss within the headline jobs achieve was accompanied by indicators of labor supply issues. Whereas fewer jobs have been added, and the labor drive participation fee declined, people who did discover new positions obtained greater earnings.

That’s seemingly persevering with to check and pressure the Federal Reserve’s place on the transitory inflation narrative. That is as commodity costs climbed on Monday. These included crude oil, aluminum and iron ore. Rising Treasury yield futures could possibly be indicating that the markets anticipate an more and more less-dovish Fed because it prepares to provoke tapering, seemingly as early as November.

Nasdaq Technical Evaluation

The Nasdaq 100 is seeing blended technical alerts. Final week, a Bullish Harami candlestick sample was confirmed, hinting at near-term beneficial properties. On the similar time, there was a bearish crossover between the 20- and 50-day Easy Shifting Averages (SMA). Costs are actually buying and selling in-between these two alerts. Nonetheless, the long-term 200-day SMA sits across the 13829 – 14059 inflection zone. Within the occasion of additional losses, this might reinstate the dominant upside focus.

Nasdaq 100 – Each day Chart

Nasdaq 100 Falls Ahead of US CPI as Treasury Yields Rise, Hang Seng Index at Risk

Chart Created in TradingView

Tuesday’s Asia Pacific Buying and selling Session

The bitter tone set on Wall Avenue dangers reverberating outwards as Tuesday’s Asia-Pacific buying and selling session will get underway. Australia will launch enterprise situations and confidence knowledge. Latest beneficial properties in coal and iron ore costs might hold the ASX 200 lifted. These commodities are key exports. In the meantime, the Kospi Index will likely be eyeing the Financial institution of Korea financial coverage announcement. The 7-day repurchase fee is predicted to be left unchanged at 0.75%.

A comparatively quiet financial docket might hold merchants centered on the general market temper. This dangers sending regional indices, such because the Nikkei 225 and Cling Seng, decrease. All eyes are on the US CPI report, which is due on Wednesday. One other elevated studying might additional push Treasury yields greater. This will likely proceed denting sentiment as prospects of upper charges slowly reduces the enchantment of riskier belongings.

Cling Seng Technical Evaluation

The Cling Seng Index left behind a pretty big higher shadow on Monday as costs touched the 50-day SMA. Nonetheless, that leaves the index above the 20-day line. Furthermore, current constructive RSI divergence confirmed that draw back momentum was fading because the index examined the 23679 – 24010 assist zone. Resuming losses entails taking out that vary. Rising above the 50-day SMA could possibly be a near-term bullish sign however, inserting the deal with the 26400 – 26824 resistance zone.

Cling Seng – Each day Chart

Nasdaq 100 Falls Ahead of US CPI as Treasury Yields Rise, Hang Seng Index at Risk

Chart Created in TradingView

— Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the feedback part under or @ddubrovskyFX on Twitter

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