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Nasdaq 100 Tumbles on Lingering Ukraine Dangers, APAC Might Comply with Decrease


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

  • Dow Jones, S&P 500 and Nasdaq 100 indexes closed -1.78%, -2.12% and -2.96% respectively
  • The US ramped up warnings a couple of potential Russian assault on Ukraine, leading to a broad selloff in threat belongings and flee to secure havens
  • Asia-Pacific markets look set to open decrease as buyers assess geopolitical dangers and rising bets on Fed fee hikes

Ukraine Disaster, James Bullard, Jobless Claims, Asia-Pacific at Open:

Wall Road equities tumbled on Thursday as buyers weighed on rising geopolitical tensions in Japanese Europe after the US ramped up warnings a couple of potential Russian assault on Ukraine, although Moscow repeatedly denied that. US Secretary of State Antony Blinken mentioned on Thursday that Russia is getting ready to invade Ukraine within the “coming days”, presumably underneath false pretenses.

In the meantime, St. Louis President James Bullard cautioned that “we’ve been in a technology that this (inflation) may get uncontrolled”, inferring that the Fed ought to be extra aggressive in tightening financial coverage. Beforehand, he has prompt that the Fed ought to carry up charges by 100 bps earlier than 1st July in his interview with CNBC. His hawkish feedback add additional strain on threat belongings, notably the rate-sensitive tech sector.

Shares already pulled again throughout Thursday’s APAC mid-day buying and selling session after Russian-backed separatists claimed that Ukrainian forces have violated ceasefire guidelines. The information got here from Russian state information company RIA Novosti. Danger sentiment turned bitter instantly, with AUD/JPY plunging whereas crude oil and gold prices leaping. This displays how fragile market sentiment is towards the backdrop of lingering geopolitical tensions in Japanese Europe. Crude oil, gold, Treasuries and fairness indices look like extra delicate to the Ukraine disaster.

The Nasdaq 100 index led the decline, because the rate-sensitive and relatively moderately costly tech sector is extra weak to rate of interest hikes and geopolitical dangers. Yields on 10-year US Treasuries pulled again beneath the 2% mark on surging heaven demand. Gold costs rallied to $1,900 – a seven-month excessive. Crude oil costs rose barely, as the continuing Iran nuclear talks revitalized hopes for the return of Iranian oil to ease provide constraints.

In the meantime, weekly preliminary US jobless claims information got here in at 248okay, in comparison with a 219okay estimate. The variety of folks submitting for unemployment claims has rebounded barely final week, however stays considerably decrease than the pandemic ranges. This underscored a decent market situation amid a gradual exit from Omicron-related restrictions.

Preliminary US Jobless Claims

Nasdaq 100 Tumbles on Lingering Ukraine Risks, APAC May Follow Lower

Supply: Bloomberg, DailyFX

Asia-Pacific markets look set to open decrease on Friday following a bitter lead on Wall Road.Futures in Japan, Hong Kong, Australia, South Korea, Taiwan, Singapore, Malaysia, India and Indonesia are within the pink, whereas these in mainland China and Thailand are within the inexperienced.

Hong Kong is planning to conduct mass testing of Covid-19 to its total residents to curb the speedy unfold of Omicron instances within the metropolis. Native media mentioned the citywide testing will start in early March and can final for 3 weeks. The inventory market reacted mutely nonetheless, reflecting that mass testing alone might not be enough to reignite hopes for border reopening. A document 4,285 instances had been added on Wednesday, placing strain on town’s healthcare system.

Wanting again to Thursday’s shut, 9 out of 11 S&P 500 sectors ended decrease, with 85.5% of the index’s constituents closing within the pink. Data know-how (-3.01%), communication companies (-2.96%) and shopper discretionary (-2.55%) had been among the many worst performers, whereas defensive-oriented shopper staples (+0.91%) and utilities (+0.13%) outperformed.

S&P 500 Sector Efficiency 17-02-2021

Nasdaq 100 Tumbles on Lingering Ukraine Risks, APAC May Follow Lower

Supply: Bloomberg, DailyFX

Nasdaq 100 Technical Evaluation

The Nasdaq 100 index is trending decrease inside a “Descending Channel” as highlighted on the chart beneath. Costs fashioned consecutive decrease highs and lows over the previous few weeks, underscoring a downward trajectory. A right away help degree will be discovered at 14,160 – the 127.2% Fibonacci extension. The MACD indicator is flattening beneath the impartial midpoint, suggesting that the general momentum stays weak.

Nasdaq 100 Index– Each day Chart

Nasdaq 100 Tumbles on Lingering Ukraine Risks, APAC May Follow Lower

Chart created with TradingView

Cling Seng Index Technical Evaluation:

The Cling Seng Index (HSI) breached above a “Falling Wedge” sample from the upside. Costs have since reversed greater and fashioned a “Ascending Channel” as highlighted on the chart beneath, hinting that costs could have bottomed out after a protracted consolidation. A right away resistance degree will be discovered at round 24,900 – the 127.2% Fibonacci extension. Breaching above this degree could expose the following resistance degree of 25,600. The MACD indicator is trending greater above the impartial midpoint, underscoring bullish momentum.

Cling Seng Index – Each day Chart

Nasdaq 100 Tumbles on Lingering Ukraine Risks, APAC May Follow Lower

Chart created with TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index has rebounded sharply over the past two weeks, difficult an instantaneous resistance degree of seven,290 – the 61.8% Fibonacci retracement. Breaching above this degree could intensify near-term shopping for strain and expose the following resistance degree of seven,435. A pullback from right here could result in a take a look at of seven,190 for help. The MACD indicator is trending greater beneath the impartial midpoint, suggesting {that a} technical rebound is underway.

ASX 200 Index – Each day Chart

Nasdaq 100 Tumbles on Lingering Ukraine Risks, APAC May Follow Lower

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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