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Nasdaq 100 in Cautious Temper as Yields Climb, Cling Seng Index Might Rise


NASDAQ 100,HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 closed -0.56%, +0.08%, and +0.75% respectively on Friday
  • US 10-year Treasury yields reached 2-year excessive, weighing on the know-how sector
  • Asia-Pacific markets look set to open modestly greater. US markets will reopen after a vacation

Nasdaq 100, Cling Seng Index, Treasury Yield, BOJ, Asia-Pacific on the Open:

US markets will resume buying and selling on Tuesday after a break. Traders will proceed to watch banks’ earnings for clues about rising prices and better internet curiosity margin down the street. Final week, JPMorgan and Citigroup introduced disappointing outcomes as they each highlighted value ‘headwinds’ and moderating Wall Avenue Income. At present, GoldmanSachs will launch its This fall earnings.

The speed of 10-year US treasuries climbed to a contemporary two-year greater of 1.81%, exerting downward strain on equities as bonds provide a substitute for threat property. Treasury yields are considered as risk-free benchmark, which is able to have an effect on charges on bonds and different property. Increased yields translate into rising borrowing prices for leveraged corporates and people, doubtlessly squeezing their revenue margin. This renders the Nasdaq 100 index extra vulnerable to promoting in comparison with the Dow Jones, as many tech corporations are extremely leveraged and don’t generate optimistic money stream.

US 10-Yr Treasury Yield

Nasdaq 100 in Cautious Mood as Yields Climb, Hang Seng Index May Rise

Chart created with TradingView

Asia-Pacific markets look set to commerce greater following a optimistic lead from European markets. A string of upbeat information from Japan and China boosted sentiment on Monday, underscoring resilience of the world’s second- and third- largest economic system in opposition to the headwind of the Omicron variant. China’s central financial institution, the PBOC, reduce the borrowing value of 1-year MLF by 10 bps, exceeding market expectations.

Futures in Japan, mainland China, Australia, Hong Kong, Taiwan, Singapore, Thailand and Indonesia are within the inexperienced, whereas these in South Korea, Malaysia and India are within the crimson.

Wanting forward, the BoJ interest rate resolution dominates the financial docket alongside UK jobs report and German ZEW financial sentiment index. Discover out extra from theDailyFX economic calendar.

Hong Kong’s Cling Seng Index (HSI) fell 0.68% on Monday, with know-how shares main the decline. Hong Kong shares have largely lagged behind international friends all through 2021. Many buyers are eyeing them for discount looking, together with mainland buyers. Change information confirmed that HKD 1.46 billion have flowed into the Hong Kong market on Monday by way of inventory connections, marking a ninth consecutive session of internet influx (chart beneath).

Southbound Stream vs. Cling Seng Index

Nasdaq 100 in Cautious Mood as Yields Climb, Hang Seng Index May Rise

Supply: Bloomberg, DailyFX

Nasdaq 100 IndexTechnical Evaluation

The Nasdaq 100 index dangers breaching beneath a key help degree of 15,550 – the decrease certain of the range-bound zone it traded over the previous couple of months. Failing to carry above this degree would carry the following help degree of 15,310 after which 14,800 into focus. The MACD indicator is trending decrease, suggesting that downward momentum could also be prevailing.

Nasdaq 100 IndexEvery day Chart

Nasdaq 100 in Cautious Mood as Yields Climb, Hang Seng Index May Rise

Chart created with TradingView

Cling Seng Index Technical Evaluation

The Cling Seng Index (HSI) is making an attempt to breach a “Falling Wedge” sample from the upside, as highlighted within the chart beneath. A profitable try could sign a bullish development reversal and open the door for additional good points. Costs have pulled again to the higher trendline on the lookout for fast help. The MACD indicator is trending greater beneath the impartial midpoint, suggesting that bullish momentum could also be constructing.

Cling Seng Index – Every day Chart

Nasdaq 100 in Cautious Mood as Yields Climb, Hang Seng Index May Rise

Chart created with TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index pulled again to a range-bound zone between 7,200 to 7,500 after a ‘false breakout’ final week. The ground and ceiling of the vary could also be considered as fast help and resistance ranges respectively. The general development stays bullish-biased, as costs shaped consecutive greater highs and better lows over the previous three months. A significant breach above 7,500 could intensify shopping for strain and expose the following resistance degree of seven,760.

ASX 200 IndexEvery day Chart

Nasdaq 100 in Cautious Mood as Yields Climb, Hang Seng Index May Rise

Chart created with TradingView

— Written by Margaret Yang, Strategist for DailyFX.com

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





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