Dow Jones Advances on Vaccine Optimism, Dangle Seng Might Comply with Larger

DOW JONES, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.61%, +0.11% and +1.46% respectively
• Cyclical sectors rallied after the FDA granted Pfizer and BioNTech full US approval for his or her Covid-19 vaccine
• The Nasdaq 100 hit an all-time excessive. APAC markets are positioned to comply with greater.

Vaccine Optimism, Inventory Rally, USD, Crude Oil, Asia-Pacific at Open:

The Dow Jones Industrial Common superior for a second day, lifted by cyclically-oriented sectors akin to vitality, supplies and industrials. The FDA granted Pfizer and BioNTech full US approval for his or her Covid-19 vaccines, boosting reflation hopes. The Nasdaq 100 surged 1.46% to an all-time excessive. Semiconductor large NVIDIA (+5.49%) and electrical automobile maker Tesla (+3.83%) have been among the many greatest performers.

The DXY US Greenback index fell 0.52% to 93.00 amid vaccine optimism, assuaging strain on commodity and treasured steel costs. Gold costs breached above a key resistance stage at $1,785, opening the door to additional good points. Fast resistance ranges might be discovered at $1,810 after which $1,834. A pullback from right here could result in a check of $1,875 for assist. WTI crude oil costs rebounded 5.7% to $65.50 as vaccine approval boosted prospects for vitality demand. A direct resistance stage might be discovered at round $66.15.

WTI Crude Oil Value – Day by day

Asia-Pacific markets are positioned for a optimistic begin to the day. Futures in Japan, mainland China, Hong Kong, Australia, Hong Kong, South Korea, Singapore, India and Thailand are all within the inexperienced.

Trying forward, German GDP leads the financial docket alongside US new house gross sales. In the meantime, merchants are additionally ready for Thursday’s Jackson Gap symposium for clues in regards to the Fed’s subsequent coverage transfer. Discover out extra from the DailyFX calendar.

Hong Kong’s Dangle Seng Index (HSI) rebounded 1.05% on Monday as traders took the latest selloff as a chance to build up extra. The inventory connections registered HK$ 423 million of internet Southbound inflows (chart under), suggesting that some mainland consumers are returning to Hong Kong’s marketplace for discount searching.

Supply: Bloomberg, DailyFX

Trying again to Monday’s shut, 7 out of 9 Dow Jones sectors ended greater, with 70% of the index’s constituents closing within the inexperienced. Vitality (+2.58%), supplies (+1.92%) and industrials (+1.53%) have been among the many greatest performers, whereas healthcare (-0.48%) and client staples (-0.43%) trailed behind.

Dow Jones Sector Efficiency 23-08-2021

Supply: Bloomberg, DailyFX

Dow Jones Index Technical Evaluation

The Dow Jones index breached above a key resistance stage at 34,920, thus opening the door for additional good points in direction of 37,500 – the 261.8% Fibonacci extension. Costs stay in an “Ascending Channel”, as highlighted on the chart under, suggesting that the general pattern stays tilted to the upside. Bearish MACD divergence means that upward momentum could also be weakening nonetheless.

Dow Jones Index – Day by day Chart

Dangle Seng Index Technical Evaluation:

The Dangle Seng Index discovered some assist at 24,850 and has since rebounded. Holding above this stage could pave the best way for a technical rebound in direction of 26,200 – the 61.8% Fibonacci retracement. The MACD indicator stays under the impartial midpoint, underscoring bearish momentum.

Dangle Seng Index – Day by day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index pulled again sharply to check an instantaneous assist stage at 7,500 – the earlier resistance. The general pattern stays bullish-biased, as prompt by the consecutive greater highs and better lows shaped over the previous few months. The MACD indicator shaped a bearish crossover after hitting trendline resistance, suggesting that promoting strain could also be prevailing.

ASX 200 Index – Day by day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part under or @margaretyjy on Twitter