DOW JONES, HANG SENG, STRAITS TIMES INDEX OUTLOOK:Dow Jones erased positive factors regardless of a slew of upbeat company earnin
DOW JONES, HANG SENG, STRAITS TIMES INDEX OUTLOOK:
- Dow Jones erased positive factors regardless of a slew of upbeat company earnings from massive banks
- Singapore’s superior Q3 GDP contracted 7% YoY, financial coverage to stay unchanged
- Hong Kong inventory change resumes buying and selling on Wednesday. Xi Jinping to offer a key speech.
Dow Jones Index Outlook:
The Dow Jones Industrial Common (DJIA) got here off from a six-week excessive as revenue taking actions kicked in and company America unfolded their third quarter earnings outcomes. Not surprisingly, six out of seven S&P 500 constituent corporations, which launched their earnings on Tuesday, smashed analysts’ expectations (desk beneath). This will set an upbeat tone for the earnings season.
JPMorgan and Citigroup delivered 29.4% and 52.5% optimistic surprises respectively when it comes to their earnings per share (EPS), due to decrease loan-loss provisions. Bigger banks might outperform the smaller friends with contributions from funding banking, buying and selling and asset administration companies amid enhancing market situations. Apple’s share worth plunged 2.7% after the discharge of latest iPhones, souring threat urge for food. Financial institution of America, Goldman Sachs, Wells Fargo will reveal their earnings Wednesday.
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S&P 500 Earnings – October 13th 2020
Asia-Pacific markets opened in combined sentiment on Wednesday, with mainland Chinese language, Hong Kong and Malaysian shares prone to lead positive factors. Japanese and Australian equities opened decrease.
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Technically, the Dow Jones index has come off its six-week excessive of 28,950, getting into right into a technical correction. Given sturdy upward momentum noticed just lately, nonetheless, the Dow might regain power after transient consolidation. The MACD indicator and a widening Bollinger band each recommend that upward momentum is prevailing. A right away resistance degree could be discovered at 29,210- the current peak seen in early September. Fast help ranges could be discovered at 28,390, 28,040 after which 27,750.
Dow Jones Index – Each day Chart
Straits Occasions Index Outlook:
Singapore’s Q3 GDP contracted by -7% YoY, barely lacking economists’ -6.8% forecast. The Singapore Greenback strengthened after the MAS determined to maintain the speed of appreciation of the S$NEER coverage band at zero % and band width unchanged from April’s degree within the bi-annual financial coverage announcement immediately (chart beneath). Barring a renewed worsening of the course of the COVID-19 pandemic, the Singapore economic system is predicted to increase in 2021, following a recession this 12 months. Core inflation will stay low at 0–1% subsequent 12 months, based on the central financial institution. USD/SGD fell following the MAS assertion.
Supply: mas.gov.sg
Singapore’s Straits Occasions Index (STI) has hit a key resistance degree at 2,550 – the 50-Day Easy Shifting Common (SMA) line and has seemingly entered into a light correction. A barely weaker-than-expected Q3 GDP studying might dampen threat sentiment for buying and selling immediately. A powerful help zone of STI could be discovered at 2,450 – 2,500.
Straits Time Index – Each day Chart
Dangle Seng Index Outlook:
The Dangle Seng Index (HSI) resumes buying and selling immediately after a short lived shutdown on Tuesday attributable to dangerous climate. Mainland Chinese language and Hong Kong shares might trip the tailwind of Xi’s go to to the Better Bay Space (GBA) this week, during which he’s anticipated to strengthen inter-connections of China’s ‘Silicon Valley’ and stress Beijing’s willingness to opening up. In consequence, know-how shares might proceed to outperform.
Technically, HSI has damaged by way of a right away resistance degree at 24,450 – the 76.4% Fibonacci retracement and thus opened room for additional upside in direction of the subsequent resistance at 24,900 (chart beneath). The general development stays bullish-biased, because the MACD indicator suggests.
Dangle Seng Index – Each day Chart
— Written by Margaret Yang, Strategist for DailyFX.com
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