Nasdaq 100 Sinks on Fiscal Stimulus, Omicron Woes. Will ASX 200 Shrug off Wall Road?

Nasdaq 100, ASX 200, Nikkei 225, Construct Again Higher, Omicron – Asia Pacific Indices Briefing

Monday’s Wall Road Buying and selling Session Recap

Market sentiment deteriorated to start out off the brand new week, with the Nasdaq 100, S&P 500 and Dow Jones sinking 1.06%, 1.14% and 1.23% respectively on Monday. The VIX index, also referred to as the market’s most popular ‘concern gauge’, closed at its highest in nearly 2 weeks. Financials (-1.9%), supplies (-1.8%) and industrials (-1.7%) have been the worst-performing sectors inside the S&P 500.

A mix of US fiscal stimulus disappointment and Omicron Covid-19 variant woes possible performed a key function in markets. Over the weekend, US Senator Joe Manchin dashed hopes of getting President Joe Biden’s US$ 2 trillion ‘Construct again Higher’ financial invoice handed. By not supporting the invoice, it’ll nearly be not possible for Democrats to move the laws with none Republican backing within the 50-50 Senate.

In the meantime, threats of Covid-related restrictions in Europe additionally possible dented threat urge for food. The UK is debating whether or not or to not impose contemporary restrictions because the Netherlands locked down till the center of January. Germany imposed a quarantine on vacationers from the UK, and the Bundesbank warned that the nation’s economic system might shrink this quarter.

Nasdaq 100 Technical Evaluation

Regardless of current weak point in Nasdaq 100 futures, costs have been unable to take out the important thing 15503 – 15580 assist zone on the 4-hour chart beneath. Nonetheless, the index has confirmed a breakout below the 200-period SMA. A bearish crossover between that and the 50 line presents a downward technical bias. Clearing the assist zone exposes the late October low at 15273. In any other case, a push larger has the 50-period line in focus.

Nasdaq 100 4-Hour Chart

Nasdaq 100 Sinks on Fiscal Stimulus, Omicron Woes. Will ASX 200 Shrug off Wall Street?

Chart Created in TradingView

Tuesday’s Asia Pacific Buying and selling Session

Following the disappointing session on Wall Road, Asia-Pacific markets may very well be in danger to extra of the identical on Tuesday. New Zealand introduced that it is going to be delaying reopening its borders as a result of Omicron variant. Nevertheless, S&P 500 futures have been cautiously recovering because the Wall Road shut, suggesting that some consolidation may very well be in retailer.

Whereas the Omicron variant now makes up for about 75% of recent Covid instances within the US, a scarcity of strict lockdowns may maintain market sentiment from noticeably deteriorating as deaths stay comparatively low. Japan’s Nikkei 225 and Australia’s ASX 200 are up 1.6% and 0.4% in morning commerce.

ASX 200 Technical Evaluation

The ASX 200 stays in a consolidative setting, however a bearish Head and Shoulders chart pattern may very well be within the strategy of forming. Costs are additionally testing the 200-period SMA, which seems to be sustaining the broader upside focus. The index can also be being guided decrease by a near-term falling trendline from August. Clearing the road exposes the suitable shoulder round 7480. Quick assist appears to be the 7207 – 7096 zone.

ASX 200 – Each day Chart

Nasdaq 100 Sinks on Fiscal Stimulus, Omicron Woes. Will ASX 200 Shrug off Wall Street?

Chart Created in TradingView

— Written by Daniel Dubrovsky, Strategist for DailyFX.com

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

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