Fxequity

S&P 500 Rebound Might Lead Nikkei 225 Greater, Hong Kong Buying and selling Half-Day


S&P 500, NIKKEI 225, ASX 200 WEEKLY OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 indexes closed +1.65%, +2.44% and +3.13% respectively
  • Alphabet, Fb and Amazon will report earnings this week, setting the tone for the broader market
  • RBA interest rate resolution and US nonfarm payrolls report will even be intently monitored

US Tech Earnings, Nonfarm Payroll – Asia-Pacific Week-Forward:

Wall Avenue shares rebounded sharply on Friday, with the S&P 500 index, Dow Jones and Nasdaq 100 surging 1.65%, 2.44% and three.13% respectively. Apple – The world’s single largest firm by market cap – introduced stellar quarterly earnings that beat markets estimates. Its share worth jumped virtually 7% to $170.33, pushing the broader tech benchmark larger. This additionally put this week’s US earnings, together with Alphabet, Fb and Amazon, within the highlight. Practically 1 / 4 of the S&P 500 firms are because of report over the following few days, which is able to mark the height of the earnings season.

To this point, greater than 33% of the S&P 500 firms have reported outcomes. Amongst them, round 77% have overwhelmed market estimates with an common earnings shock of 4%, in response to information compiled by Factset. Each the proportion of firms that delivered optimistic surprises and the magnitude of the typical earnings shock have fallen barely from the earlier quarters, underscoring a harder atmosphere for corporates amid rising wage pressures and provide chain constrains.

This week’s US nonfarm payrolls information will check shares once more, as buyers scrutinize the Fed’s view on wage pressures and the roadmap for tightening. Fed Chair Jerome Powell expressed hawkish-biased opinions throughout final week’s FOMC assembly, saying that the central financial institution is not going to rule out elevating charges at each following coverage assembly this 12 months to include rising worth ranges. His hawkish feedback have rattled the market, sending threat property sharply decrease final week. Moreover, the core Private Consumption Expenditure (PCE) worth index hit a four-decade excessive of 4.9% YoY in December, barely larger than economists’ forecast of 4.8%.

US Earnings Calendar

S&P 500 Rebound May Lead Nikkei 225 Higher, Hong Kong Trading Half-Day

Supply: Bloomberg, DailyFX

APAC markets look set to kick off the week on a combined tone, with futures in Japan and Australia pointing to a decrease begin. These in Hong Kong, South Korea, Taiwan, Singapore, Malaysia, India and Thailand are within the inexperienced. Buying and selling could also be quieter than ordinary this week as a result of Lunar New Yr vacation. Mainland exchanges can be shut from 31st January to sixth February. Hong Kong alternate can be half-day buying and selling on Monday, and closed from 1st to threerd February.

For the week forward, Tuesday’s RBA and Thursday’s ECBrate of interest resolutionsdominate the financial docket alongside Friday’s US nonfarm payrolls report. Discover out extra from the DailyFX calendar.

Wanting again to Friday’s shut, 10 out of 11 S&P 500 sectors ended larger, with 86.6% of the index’s constituents closing within the inexperienced. Info expertise (+4.33%), actual property (+3.38%) and communication providers (+2.92%) had been among the many greatest performers, whereas vitality (-0.60%) trailed behind.

S&P 500 Sector Efficiency 28-01-2022

S&P 500 Rebound May Lead Nikkei 225 Higher, Hong Kong Trading Half-Day

Supply: Bloomberg, DailyFX

S&P 500 Index Technical Evaluation

The S&P 500 index breached beneath an “Ascending Channel” as highlighted on the chart beneath, coming into right into a significant correction. Costs have seemingly discovered robust assist close to the October low of 4,300 and have since rebounded. Holding above this stage might pave the best way for a bullish development reversal with an eye fixed on 4,470 – the 200% Fibonacci extension. The RSI indicator rebounded from the oversold threshold, suggesting {that a} technical rebound is underway.

S&P 500 Index – Every day Chart

S&P 500 Rebound May Lead Nikkei 225 Higher, Hong Kong Trading Half-Day

Chart created with TradingView

Nikkei 225 Technical Evaluation:

The Nikkei 225 index breached beneath a “Symmetrical Triangle” sample and thus opened the door for additional losses. This means that costs are heading south after just a few months of consolidation. Costs could also be trying for a rebound on Monday following a optimistic lead on Wall Avenue. The earlier assist stage of 26,900 has now develop into a right away resistance. The MACD indicator is trending decrease beneath the impartial midpoint, suggesting that near-term momentum stays weak.

Nikkei 225 Index – Every day Chart

S&P 500 Rebound May Lead Nikkei 225 Higher, Hong Kong Trading Half-Day

Chart created with TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index breached beneath the ground of a range-bound zone between 7,200 to 7,500, coming into right into a consolidative section. A bullish engulfing candlestick shaped on Friday recommend that patrons are most likely in search of cut price looking alternatives, and costs might prolong achieve on Monday following an honest rebound on Wall Avenue.The RSI indicator rebounded from the oversold threshold, suggesting that near-term momentum has turned optimistic.

ASX 200 Index – Every day Chart

S&P 500 Rebound May Lead Nikkei 225 Higher, Hong Kong Trading Half-Day

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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