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Nasdaq 100 Shrugs Off Inflation Considerations, Grasp Seng Breaches Key Resistance


S&P 500, Grasp Seng Index, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 closed +0.11%, +0.28%, and +0.38% respectively
  • US inflation hit a four-decade excessive of seven.0% in December, largely in keeping with expectations
  • Asia-Pacific markets look set to open increased. Hong Kong shares might proceed to guide the features

Nasdaq 100, Grasp Seng Tech, US Inflation, China Inflation, Asia-Pacific on the Open:

Wall Road shares closed mildly increased on Wednesday, because the intently watched US inflation information didn’t ship a lot of a shock. Within the prior day, Federal Reserve Chair Jerome Powell assured market contributors that the central financial institution will tighten coverage to include inflation with out hurting the financial system. This clear steering eliminated coverage uncertainties and allowed buyers to focus extra on the upcoming earnings season.

The DXY US Greenback index plummeted 0.62% in a single day, falling to a two-month low of 95.00. This can be attributed to unwinding actions as buyers have beforehand priced-in not less than three fee hikes this yr. Because the roadmap of tightening will get clear, some merchants might search for an exit and revenue taking alternatives. A mushy US Greenback is usually optimistic to shares, commodities and Rising Market belongings.

High 10 Shares by Market Cap within the Nasdaq 100

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Supply: Bloomberg, DailyFX

Hong Kong shares might proceed to rise on Thursday, led by the expertise sector. Hong Kong’s Grasp Seng Index surged 2.8% and the expertise benchmark Grasp Seng Tech Index soared practically 4.99% on Wednesday, suggesting that buyers could also be shopping for the dips in anticipation of extra financial and stimulus help. The inventory connections registered HK$ 5.29 billion of internet Southbound inflows on Wednesday, marking the best degree since October 2021. Wealth impact might encourage extra patrons to return to the market after months of promoting.

One other catalyst on Wednesday was the discharge of lower-than-expected inflation figures. December’s CPI and PPI got here in at 1.5% and 10.3% respectively, falling from November’s readings of two.3% and 12.9%. This can make it simpler for the PBOC to free financial coverage in 2022 to spice up development because the nation fought exhausting to keep up its zero-Covid coverage.

The Japanese authorities has prolonged strict border controls till the top of February amid a fast improve in Covid-19 instances because of the Omicron variant. This has weighed on market sentiment, particularly the tourism and journey sectors. The Nikkei 225 index stays in a consolidative temper ready for contemporary catalysts for a breakout.

China Inflation – Dec 2021

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Supply: Bloomberg, DailyFX

Wanting forward, a number of Federal Reserve official speeches dominate the financial docket alongside US preliminary weekly jobless claims. Discover out extra from theDailyFX economic calendar.

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

Wanting again to Wednesday’s shut, 10 out of 11 S&P 500 sectors ended increased, with 57.6% of the index’s constituents closing within the inexperienced. Supplies (+0.95%), client discretionary (+0.63%) and data expertise (+0.44%) have been among the many greatest performers, whereas healthcare (-0.26%) and financials (+0.04%) trailed behind.

S&P 500 Sector Efficiency 12-01-2022

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index rebounded from a key help degree of 15,550 – the decrease sure of the range-bound zone it traded over the previous few months. An instantaneous resistance degree might be discovered at 16,650 – the 200% Fibonacci extension. The shifting common strains are flattening, pointing to a scarcity of clear route. The MACD indicator is trending decrease, suggesting that downward momentum could also be prevailing.

Nasdaq 100Index – Each day Chart

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Chart created with TradingView

Grasp Seng Index Technical Evaluation:

The Grasp Seng Index (HSI) was buying and selling inside a “Falling Wedge” sample for the previous few months, as highlighted within the chart beneath. Costs are difficult the higher trendline of the wedge for a breakout. A profitable try might sign a bullish pattern reversal and open the door for additional features.The MACD indicator is trending increased beneath the impartial midpoint, suggesting that bullish momentum could also be constructing.

Grasp Seng Index – Each day Chart

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

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 rapid help and resistance ranges respectively. A significant breach above 7,500 might intensify shopping for strain and expose the subsequent resistance degree of seven,760.

ASX 200 Index – Each day Chart

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

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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