HANG SENG, ASX 200, DOW JONES INDEX OUTLOOK:US present houses gross sales registered 6.85 million in October, marking a fifteen-y
HANG SENG, ASX 200, DOW JONES INDEX OUTLOOK:
- US present houses gross sales registered 6.85 million in October, marking a fifteen-year excessive
- Asia-Pacific equities could open increased as expertise shares led a rebound on Wall Road
- Mnuchin’s request for the Fed to return unused stimulus fundscould dent sentiment
US Knowledge, Virus Counts, Asia-Pacific at Open:
Power and expertise sectors led a gentle rebound on Wall Road, with the Dow Jones, S&P 500 and Nasdaq indices closing 0.15%, 0.39% and 0.87% increased respectively. Climbing virus counts and extra lockdown measures stay the focus, which can have re-ignited a “keep at dwelling’ commerce setup that tends to favor of tech shares. A a lot stronger-than-expected US present dwelling sale determine boosted market confidence. The info got here in at 6.85 million, marking its highest studying seen since 2005. This displays a robust rebound in housing turnover after lockdown measures had been eased in the course of the summer time.
Supply: Bloomberg, DailyFX
US preliminary weekly jobless claimsregistered 742okay within the week ending November 13th, in comparison with 711okay within the week earlier than. The studying additionally got here above market expectations of a 707okay improve, reflecting weaker job market sentiment as one other pandemic wave hits the economic system.
Supply: Bloomberg, DailyFX
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Asia-Pacific markets are positioned to open mildly increased following a optimistic US lead, with fairness futures in Japan, Hong Kong, Australia and Singapore edging increased.
US Treasury Secretary StevenMnuchin stated on Thursday that he gained’t lengthen a number of emergency lending packages, which had been run by the Federal Reserve, past this yr. The Treasury Division additionally requested the Fed to return unused funds, which may hinder Biden’s new secretary from restarting the lending amenities. This might function a detrimental catalyst for threat belongings as assist for company bonds and loans to mid-sized companies are nonetheless possible wanted to climate the economic system by way of virus’ impacts.
Sector-wise, 6 out of 9 Dow Jones sectors ended within the inexperienced, with 60% of the index’s constituents closing increased. Power (+1.72%), info expertise (+1.00%) and shopper staples (+0.79%) had been among the many finest performers, whereas healthcare (-1.34%) and communication providers (-1.12%) had been lagging behind.
Dow Jones Sector Efficiency 19-11-2020
Supply: Bloomberg, DailyFX
On the macro entrance, UK retail gross sales and Eurozone shopper confidence index are among the many high occasions at this time. Discover out extra on the DailyFX financial calendar.
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Dow Jones Index Technical Evaluation:
Technically, the Dow Jones Index got here off from a key resistance stage at 29,850 – the 76.4% Fibonacci extension – and entered right into a technical correction. An instantaneous assist stage could be discovered at 29,220 – the 61.8% Fibonacci extension. Breaking this assist could open the door for additional losses with a watch on 28,710. The MACD indicator is prone to type a “Demise Cross”, which means that downward momentum could be prevailing.
Dow Jones Index – Each day Chart
Cling Seng Index Technical Evaluation:
The Cling Seng Index (HSI)seems have entered a interval of consolidation since November 9th, when the costs hit a 4-month excessive. The general pattern stays bullish-biased though some short-term pullback could also be seen earlier than costs try increased highs. An instantaneous resistance stage could be discovered at 26,840 – which is the 161.8% Fibonacci extension stage. An instantaneous assist stage could be discovered at round 25,740 – the 100% Fibonacci extension.
Cling Seng Index – Each day Chart
ASX 200 Index Technical Evaluation:
Technically, the ASX 200 index has possible damaged above a right away resistance stage at 6,530 – the 76.4% Fibonacci retracement – and thus opened the room for additional upside potential. The general pattern stays bullish-biased, though some near-term consolidation can nonetheless be seen at round 6,530.
ASX 200 Index – Each day Chart
Really useful by Margaret Yang, CFA
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— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part under or @margaretyjy on Twitter