Dow Jones, Nasdaq 100, ASX 200, Danger Aversion, Delta Covid Variant, US-China Tensions – Asia Pacific Indices BriefingDow Jones, S&P 500 and
Dow Jones, Nasdaq 100, ASX 200, Danger Aversion, Delta Covid Variant, US-China Tensions – Asia Pacific Indices Briefing
- Dow Jones, S&P 500 and Nasdaq 100 sink as threat aversion continues
- Delta Covid variant, US-China geopolitical tensions souring temper
- ASX 200 could also be susceptible, eyeing RBA assembly minutes on Tuesday
Monday’s Wall Road Buying and selling Session Recap
Danger aversion engulfed world monetary markets to begin off the buying and selling week, arguably extending the considerably pessimistic temper that wrapped up final week. On Wall Road, the Dow Jones, S&P 500 and tech-heavy Nasdaq Composite closed -2.09%, -1.59% and -1.06% respectively. Vitality (-3.59%), financials (-2.8%) and supplies (-2.13%) led declines within the S&P 500.
The reflationary commerce is coming underneath fireplace alongside world development estimates, with the 10-year Treasury yield dipping beneath 1.2% for the primary time since February. This comes amid rising world coronavirus instances amid the extra contagious Delta Covid variant as vaccination charges develop at uneven paces around the globe. Final week’s disappointing US shopper sentiment might have additionally poured chilly water on GDP development bets.
An absence of outstanding financial knowledge throughout Monday’s Wall Road session seemingly positioned buyers’ deal with basic market sentiment. In the meantime, US-China geopolitical tensions are heating up. The US, UK and their allies blamed the Chinese language authorities for the latest Microsoft Trade hack. This might result in retaliation from the world’s second-largest financial system amid an arguably fragile financial surroundings.
Dow Jones Technical Evaluation
Dow Jones futures sank to the 100-day Easy Shifting Common (SMA) as the road acted as key help, sustaining the dominant upside focus. That is because the index rejected the important thing 34760 – 35000 resistance zone. A bounce off the SMA might place the main target again on that vary. In any other case, extending losses underneath the 100-day SMA might open the door to a cloth flip decrease in the direction of the June low.
Dow Jones Futures – Day by day Chart
Chart Created in TradingView
Nasdaq 100 Technical Evaluation
The Nasdaq 100 prolonged losses after a bearish Capturing Star candlestick sample emerged final week. Costs took out and subsequently confirmed a break underneath the near-term rising trendline from Could. Which will open the door to additional losses in the direction of the 50-day SMA. At that time, this line might act as key help and preserve a broader upside focus again in the direction of the all-time excessive.
Nasdaq 100 – Day by day Chart
Chart Created in TradingView
Tuesday’s Asia Pacific Buying and selling Session
Tuesday’s Asia-Pacific buying and selling session can also be trying fairly quiet as the brand new week will get underway. This will proceed inserting the main target for buyers on basic market temper. With that in thoughts, regional benchmark indices, such because the ASX 200, Nikkei 225 and KOSPI, might observe the pessimistic Wall Road lead. However, merchants may additionally take a breather and use dips in equities as rebalancing alternatives amid a still-lose world financial coverage surroundings. RBA minutes of the July assembly are on faucet for Australia’s ASX 200, the place the central financial institution’s still-dovish tone might supply help to native equities.
ASX 200 Technical Evaluation
The ASX 200 took out the 50-day SMA, exposing the 100-day line. Nonetheless, affirmation of the breakout is missing as costs as soon as once more face the previous 2020 excessive at 7202. This worth might act as a key inflection level, opening the door to a bounce again in the direction of the all-time excessive. Nonetheless, the Capturing Star candle, established again in June, continues to hold bearish undertones.
ASX 200 – Day by day Chart
Chart Created in TradingView
— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the feedback part beneath or @ddubrovskyFX on Twitter
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