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Nikkei 225 and Dangle Seng Index in Cautious Temper After a Uneven US Session


NASDAQ 100, NIKKEI 225, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 closed -0.45%, -0.14%, and +0.14% respectively
  • Buyers mulled the impression of Fed price hikes and the unfold of Omicron variant on the financial system
  • Asia-Pacific markets look set to open modestly decrease, with Japan markets resuming buying and selling after a break

Nasdaq 100, Dangle Seng Index, Southbound, Asia-Pacific on the Open:

Wall Road shares rebounded through the late buying and selling session and erased some deep intraday losses on Monday. The tech-heavy Nasdaq 100 index fell as a lot as 2.7% earlier than bouncing again, ending modestly increased. This means that market sentiment stays fragile as buyers mull the impression of Federal Reserve price hikes, rising Treasury yields and the fast unfold of Omicron variant of the Covid-19 virus. But there appears to be dip patrons ready for a cut price too, because the latest US jobs knowledge confirmed good indicators of financial restoration. The US 10-year Treasury yield pulled again to 1.76% from 1.80%, assuaging stress on progress shares, valuable metals and Rising Market property.

Wanting forward, the discharge of US company earnings will be the subsequent focus. Huge banks equivalent to JPMorgan, Wells Fargo and Citigroup will report outcomes this Friday, adopted by Goldman Sachs, Financial institution of America and Morgan Stanley subsequent week. The estimated earnings progress price for the S&P 500 is 21.7% in This fall 2021, marking a fourth straight quarter of earnings progress above 20%, in keeping with Factset.

US Earnings Highlights

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Supply: Bloomberg, DailyFX

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

Hong Kong’s Dangle Seng Index (HSI) rallied 1.08% on Monday, defying fears a few quicker tempo of Fed tightening. Hong Kong shares have largely lagged behind international friends all through 2021, and their valuations have reached the bottom stage for the reason that outbreak of Covid-19. Many buyers are eyeing Hong Kong shares for cut price looking, together with mainland buyers. Change knowledge confirmed that HKD 3.15 billion have flowed into the Hong Kong market on Monday through inventory connections, marking a fourth consecutive session of web influx (chart under).

Expertise shares outperformed, fueling a 2.21% rally within the Dangle Seng Tech Index (HSTECH). Comparatively small cap Kuaishou (+10.11%) and JD well being (+11.64%) outperformed massive cap identify Alibaba (-0.93%) and Tencent (+2.3%). If this rally might final, extra patrons could return to the market searching for alternatives to purchase the dip.

Southbound Circulate vs. Dangle Seng Index

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Supply: Bloomberg, DailyFX

Wanting forward, the Fed Chair Jerome Powell testimony dominates the financial docket alongside Australia retail gross sales and Japan coincident index. Discover out extra from the DailyFX economic calendar.

Wanting again to Monday’s shut, eight out of 11 S&P 500 sectors ended decrease, with 64% of the index’s constituents closing within the purple. Utilities (-1.15%), supplies (-0.99%) and shopper staples (-0.73%) have been among the many worst performers, whereas healthcare (+1.04%) and data know-how (+0.10%) outperformed.

S&P 500 Sector Efficiency 10-01-2022

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Supply: Bloomberg, DailyFX

Nasdaq 100 IndexTechnical Evaluation

The Nasdaq 100 index dangers breaching under a key help stage of 15,550 – the decrease sure of the range-bound zone it traded over the previous couple of months. Failing to carry above this stage would convey the subsequent help stage 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

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Chart created with TradingView

Nikkei 225 Technical Evaluation:

The Nikkei 225 index is hovering inside a “Symmetrical Triangle” sample over the previous few month, ready for recent catalysts for a decisive breakout. The September excessive of 30,700 serves as a key resistance stage, whereas the decrease trendline could present some near-term help. The MACD indicator is about to kind a bearish crossover beneath the impartial midpoint, suggesting that near-term momentum stays weak.

Nikkei 225 Index – Every day Chart

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

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 pattern stays bullish-biased, because the MACD indicator pierced by way of the impartial midpoint and moved increased. A significant breach above 7,500 could intensify shopping for stress and expose the subsequent resistance stage of seven,760.

ASX 200 IndexEvery day Chart

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Chart created with TradingView

— Written by Margaret Yang, Strategist for DailyFX.com

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





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