Fxequity

Nasdaq 100 Falls on Rising Yield Considerations, Will Grasp Seng Index observe?


Nasdaq 100, Grasp Seng Index, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 closed -0.96%, -0.97%, and -1.07% respectively
  • Financial institution earnings topped market estimates, however didn’t raise sentiment as traders mulled price hikes
  • Asia-Pacific markets look set to open combined. Hong Kong shares might lead the positive factors

Nasdaq 100, US Earnings, Grasp Seng Index, Asia-Pacific on the Open:

Wall Road shares closed decrease on Wednesday as traders weighed rising inflation and its ramifications for tightening financial coverage. Defensive-oriented client staples and utilities outperformed, whereas cyclical-linked client discretionary, financials and data know-how sectors trailed behind. This displays a cautious sentiment on Wall Road. Not too long ago, traders rotated out from the rate-sensitive tech sector into worth names, in an try to cost within the impression of a number of price hikes this 12 months. Subsequent week’s Federal Reserve assembly might be within the highlight as market contributors scrutinize the Fed’s roadmap for tightening.

On the earnings entrance, a slew of upbeat outcomes helped to alleviate rising value considerations and underpin market sentiment. Financial institution of America topped analysts’ estimate for revenue on robust asset administration and banking charges. The financial institution additionally launched $851 million in reserves as credit score high quality improved. In contrast to Goldman Sachs and JPMorgan, BoA solely see a small enhance in operational bills. Morgan Stanly additionally beat market’s EPS forecast as the corporate managed to maintain a lid on bills. Shopper big P&G launched better-than-expected earnings, and the corporate raised its outlook for gross sales progress in 2022. The corporate mentioned worth hikes helped offset increased commodity and freight prices, and it expects inflation to weigh much more closely on its fiscal 2022 outcomes.

Prime 10 Shares by Market Cap within the Nasdaq 100

Nasdaq 100 Falls on Rising Yield Concerns, Will Hang Seng Index follow?

Supply: Bloomberg, DailyFX

Hong Kong shares look set to commerce mildly increased regardless of a bitter lead on Wall Road. Chinese language lenders are anticipated to decreaseborrowing prices for a second month on Thursday after the PBOC diminished 1-year MLF price by 10bps and pledged extra easing to stabilize the financial system.

The inventory connections registered a small HK$ 591million of internet Southbound inflows on Wednesday, marking the 11th consecutive day of internet influx. This means that mainland traders are in all probability searching for discount looking alternatives after months of promoting. The PBOC’s stance to ease financial coverage is one other optimistic catalyst for shares, particularly the rate-sensitive actual property and know-how sectors.

Grasp Seng Index vs. Southbound Every day Web Circulate

Nasdaq 100 Falls on Rising Yield Concerns, Will Hang Seng Index follow?

Supply: Bloomberg, DailyFX

Trying forward, Australian jobs report dominates the financial docket alongside Eurozone core inflation figures and ECB financial coverage assembly accounts. Discover out extra from theDailyFX economic calendar.

Asia-Pacific markets look set to open combined on Thursday. Futures in Japan, mainland China, Australia, South Korea, Singapore, India are within the purple, whereas these in Hong Kong, Taiwan, Malaysia, Thailand and Indonesia are within the inexperienced.

Trying again to Wednesday’s shut, 9 out of 11 S&P 500 sectors ended decrease, with 76.6% of the index’s constituents closing within the purple. Shopper discretionary (-1.81%), financials (-1.65%) and data know-how (-1.39%) have been among the many worst performers, whereas defensive-linked client staples (+0.68%) and utilities (+0.46%) registered small positive factors.

S&P 500 Sector Efficiency 19-01-2022

Nasdaq 100 Falls on Rising Yield Concerns, Will Hang Seng Index follow?

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index breached beneath a key assist degree of 15,550 – the decrease certain of the range-bound zone – and thus opened the door for additional losses. A right away assist degree could be discovered at 14,880 – the 100% Fibonacci extension. The transferring common traces are about to kind a “Dying Cross”, pointing to draw back potential. The MACD indicator is trending decrease, suggesting that downward momentum could also be prevailing.

Nasdaq 100Index – Every day Chart

Nasdaq 100 Falls on Rising Yield Concerns, Will Hang Seng Index follow?

Chart created with TradingView

Grasp Seng Index Technical Evaluation:

The Grasp Seng Index (HSI) is trying to breach a “Falling Wedge” sample from the upside, as highlighted within the chart beneath. A profitable try might sign a bullish pattern reversal and open the door for additional positive factors. Costs have pulled again to the higher trendline searching for instant assist. The MACD indicator is converging, suggesting that bullish momentum could also be fading.

Grasp Seng Index – Every day Chart

Nasdaq 100 Falls on Rising Yield Concerns, Will Hang Seng Index follow?

Chart created with TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index is buying and selling inside a range-bound zone between 7,200 to 7,500 for a couple of months. The ground and ceiling of the vary could also be considered as instant assist and resistance ranges respectively. A significant breach above 7,500 might intensify shopping for strain and expose the subsequent resistance degree of seven,760. The MACD indicator shaped a “Dying Cross” and trended decrease, suggesting that near-term momentum is weak.

ASX 200 Index – Every day Chart

Nasdaq 100 Falls on Rising Yield Concerns, Will Hang Seng Index follow?

Chart created with TradingView

— Written by Margaret Yang, Strategist for DailyFX.com

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





Source link

Leave a Reply

Your email address will not be published.