US ELECTION, DOW JONES, ASX 200 OUTLOOK:US shares prolonged positive aspects because the election outcomes tilted in direction of
US ELECTION, DOW JONES, ASX 200 OUTLOOK:
- US shares prolonged positive aspects because the election outcomes tilted in direction of a Biden-win, divided Congress
- Dow, S&P 500 and Nasdaq rose 1.95%, 1.95% and a couple of.59% respectively, gold jumped as USD fell
- ASX 200 index could rise alongside Asia-Pacific shares, eyeing 6,200 for key resistance
US Election, Dow Jones and Asia-Pacific markets:
All three main US indices soared on Thursday regardless of a file day by day coronavirus instances registered on 4th Nov. The Election odds appeared more and more biased in direction of Joe Biden after he took a number of swing states. Biden appears to be on the course to pocket 264 out of the 270 electoral votes which can be required to declare a victory, versus Donald Trump’s 214 votes. The 6 electoral votes from Nevada may be crucial to provide the ultimate name. Biden is main in Nevada with a slight benefit – 49.4% vs. 48.5% – for the time being of writing. Tight races in Pennsylvania and Georgia are additionally being scrutinized.
The haven-linked US Greenback fell to its lowest degree in two months as demand for security light. A weaker US Greenback has underpinned valuable metallic costs, with gold hovering 2.3% to US$ 1,945. Crude oil costs, nevertheless, didn’t register a giant acquire final night time as demand aspect remained a key weighing issue on power costs.
In the course of the FOMC assembly final night time, the Fed determined to maintain the short-term borrowing charges unchanged at 0%-0.25%, saying that financial actions stays “nicely under” pre-pandemic ranges. No additional financial stimulus have been introduced within the assembly, however the central financial institution remained open to contemporary easing and re-emphasised the necessity for extra fiscal assist. Right now’s US non-farm payrolls and unemployment fee are among the many key knowledge to look at. Discover out extra on our financial calendar.
US Non-Farm Payrolls – 12 Months
Supply: Bloomberg, DailyFX
The US has registered 107,872 new coronavirus instances on November 4th, marking a file excessive. After the election, market focus will seemingly shift again to the basic parts and the way the federal government plans to deal with one other pandemic wave.
New Covid-19 Instances within the US (Each day)
Supply: Google
Really useful by Margaret Yang, CFA
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Sector-wise, all 9 Dow sectors closed within the inexperienced, with 90% of the index’s constituents ending larger. Supplies (+5.43%), industrials (+3.21%) and financials (+2.90%) have been outperforming, whereas healthcare (+0.21%) and power (+0.52%) have been lagging behind.
Dow Jones Index Sector Efficiency 05-11-2020
Supply: Bloomberg, DailyFX
Technically, the Dow Jones index had a good rebound this week and has damaged above the 20-, 50- and 100-Day Easy Transferring Common (SMA) traces with robust upward momentum. It might problem a key resistance degree at 12,200, the place it failed to interrupt in early September and mid-October. The MACD indicator has seemingly shaped a “Golden Cross”, suggesting that short-term momentum could have turned bullish.
Dow Jones Index – Each day Chart
ASX 200 Index Outlook:
Australia’s ASX 200 index could rise alongside broader Asia-Pacific markets following robust US leads. Technically, the ASX 200 index arrived at a key resistance degree at 6,200, which it failed to interrupt by way of a number of occasions up to now 4 months. A profitable breakthrough could open the room for extra upside potential with an eye fixed on 6,300. One other failure try could end in a pullback with an eye fixed on 6,100 assist – the 20-Day SMA line.
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