Dow Jones Advances Regardless of Progress Considerations, Dangle Seng Assessments Assist

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

• Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.31%, +0.26% and +0.03% respectively
• Cyclical sectors pulled again amid lingering viral considerations and weaker Chinese language knowledge
• Futures throughout the APAC markets are positioned to open modestly greater. US retail gross sales knowledge in focus

Chinese language Information, Crude Oil, Pandemic, US Retail Gross sales, Asia-Pacific at Open:

The Dow Jones Industrial Common superior to an all-time excessive on Monday, lifted by defensive sectors corresponding to healthcare and shopper staples. However, cyclically-oriented sectors corresponding to power, materials and industrials led the decline as buyers mulled rising Delta variant instances all over the world and far weaker-than-expected Chinese language retail gross sales and industrial manufacturing figures.

Each gauges fell in need of market expectations and marked a fourth consecutive month-to-month decline, displaying that the world’s second-largest economic system is struggling to preserve development momentum amid a viral resurgence and excessive climate situations. Consequently, WTI crude oil costs fell for a 3rd day because the outlook for power demand waned. The DXY US Greenback Index fell from a key degree at 93.00 in a single day, probably forming a “Double Prime” chart sample.

China continued to undertake tighter journey restrictions and imposedlockdowns in areas the place Covid-19 infections have been discovered. The Nationwide Well being Fee (NHC) reported solely 13 new regionally transmitted coronavirus instances on Monday, the bottom every day complete in greater than two weeks. This introduced a silver lining for placing the pandemic underneath management, but the authorities might proceed to undertake tight measures to forestall resurgence.

WTI Crude Oil Worth – Each day

Asia-Pacific markets are positioned for a constructive begin to the day. Futures in Japan, mainland China, Australia, Hong Kong, Singapore, India and Thailand are within the inexperienced, whereas these in South Korea, Taiwan and Malaysia are within the purple.

Wanting forward, the RBA assembly minutes leads the financial docket alongside US retail gross sales. Discover out extra from the DailyFX calendar.

Hong Kong’s Dangle Seng Index (HSI) misplaced 0.80% on Monday, dragged by Tencent (-3.5%) and Meituan (-5.1%). The inventory connections registered HK$ 5.63 billion of web Southbound outflows (chart under), reflecting that extra mainland sellers are returning to Hong Kong’s market amid fears about additional regulatory clampdowns.

Supply: Bloomberg, DailyFX

Wanting again to Monday’s shut, 4 out of 9 Dow Jones sectors ended greater, with 60% of the index’s constituents closing within the inexperienced. Healthcare (+1.31%), shopper discretionary (+0.88%) and shopper staples (+0.58%) have been among the many finest performers, whereas power (-1.02%) and communication providers (-0.79%) trailed behind.

Dow Jones Sector Efficiency 17-08-2021

Supply: Bloomberg, DailyFX

Dow Jones Index Technical Evaluation

The Dow Jones index breached above a key resistance degree at 34,920, thus opening the door for additional beneficial properties. 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 nevertheless.

Dow Jones Index – Each day Chart

Dangle Seng Index Technical Evaluation:

The Dangle Seng Index has probably shaped an “Ascending Channel” as highlighted on the chart under. The ceiling and the ground of the channel could also be seen as rapid resistance and help ranges respectively. Breaching under the 26,200 help might open the door for additional losses.

Dangle Seng Index – Each day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index has breached above a key resistance degree at 7,500 and opened the door for additional upside potential. The following key resistance degree might be discovered at 7,760 – the 261.8% Fibonacci extension. The general pattern stays bullish-biased, as instructed by the consecutive greater highs and better lows shaped over the previous few months. The MACD indicator is about to hit a trendline resistance and may even see a pullback. That mentioned, near-term momentum could also be faltering.

ASX 200 Index – Each day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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