S&P 500, NIKKEI 225, ASX 200 INDEX OUTLOOK:ASX 200, Nikkei 225 indexes face a souring day as US shares retreated from report
S&P 500, NIKKEI 225, ASX 200 INDEX OUTLOOK:
- ASX 200, Nikkei 225 indexes face a souring day as US shares retreated from report highs
- British Prime Minister Boris Johnson launched nationwide lockdown on England
- Rising gold, copper and iron ore costs underpinned metals and mining shares, VIX jumped
Advisable by Margaret Yang, CFA
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S&P 500, Lockdown, Gold, Asia-Pacific at Open:
US shares retreated from their report highs on the primary buying and selling day of 2021, setting a souring tone for Asia-Pacific buying and selling open. The Nikkei 225, ASX 200 and Hold Seng Index futures are positioned to commerce decrease following a bearish US lead, whereas the VIX volatility index surged to a two-week excessive.
On the geopolitical entrance, Iran was reported to have resumed enriching uranium to 20% purity, which indicators a breach of the 2015 nuclear deal. Iran has additionally seized a South Korean ship transiting the Persian Gulf. Rising geopolitical pressure is perhaps one of many causes behind gold’s 2.3% rally seen in a single day and it could catalyze additional liquidation ought to the state of affairs escalate. Gold costs have doubtless damaged a key chart resistance and thus opened the door for additional upside potential. Learn extra on my gold report right here.
Information crossed the wires {that a} nationwide lockdown will likely be imposed on the UK and that Germany might prolong its lockdown additional weighed on sentiment. Nonetheless-climbing coronavirus circumstances across the globe even after an preliminary rollout of Covid-19 vaccines level to a bumpy highway to restoration, and the ensuing disruption in enterprise exercise in most elements of the US and Europe seems to have spurred a brand new spherical of profit-taking.
Australia’s ASX 200 index might exhibit resilience towards exterior headwinds due to rising gold, copper and iron ore costs backed by sturdy demand from Asia. The ASX 200 Index trades mildly decrease on the open, underpinned by supplies (+1.35%) and knowledge expertise (+0.07%) sectors whereas actual property (-1.59%) and vitality (-1.56%) have been lagging.
VIX Volatility Index
Chart by IG
Sector-wise, 10 out of 11 S&P 500 sectors ended decrease, with 84.2% of the index’s constituents closing within the pink on Monday. Actual property (-3.29%), utilities (-2.60%) and industrials (-2.55%) have been among the many worst performers, whereas vitality (+0.13%) registered a small acquire.
S&P 500 Sector Efficiency 04-01-2021
Supply: Bloomberg, DailyFX
S&P 500 High 10 Inventory Efficiency 04-01-2021
Supply: Bloomberg, DailyFX
Advisable by Margaret Yang, CFA
Why do rates of interest matter for currencies?
On the macro entrance, German retail gross sales, unemployment fee and US ISM Manufacturing PMI are among the many prime occasions at the moment. Discover out extra from DailyFX calendar.
S&P 500 Index Technical Evaluation
The S&P 500 indexis testing the decrease sure of “Ascending Channel” fashioned since early November, the breaching of which may sign a deeper technical pullback. The general development stays bullish-biased, though a MACD divergence flags danger of depleting upward momentum. Fast help and resistance ranges might be discovered at 3,660 (38.2% Fibonacci extension) and three,750 (61.8% Fibonacci extension) respectively.
S&P 500 Index – Each day Chart
Nikkei 225 Index Technical Evaluation:
The Nikkei 225 index has damaged a spread fashioned since early December as highlighted within the pink shade under, and since entered a interval of consolidation. Value might come again and retest the higher sure of the rectangle, which is at round 27,000. The general development stays bullish-biased as advised by upward-sloped 20-, 50- and 100-Day Easy Transferring Common (SMA) strains, albeit a technical pullback seems to be underway.
Nikkei 225 Index – Each day Chart
ASX 200 Index Technical Evaluation:
The ASX 200 index stays inside its “Ascending Channel” as highlighted on the chart under, however upward momentum seems to be faltering because the MACD indicator traits decrease. A direct help stage might be discovered at 6,630 – the 161.8% Fibonacci extension stage. A agency break down under this stage might open the door for additional losses. A direct resistance stage might be discovered at 6,748 – the higher Bollinger band.
ASX 200 Index – Each day Chart
Advisable by Margaret Yang, CFA
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— Written by Margaret Yang, Strategist for DailyFX.com
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