Dow Jones Falls on Rising Virus Instances, Hold Seng Susceptible to a Pullback

Dow Jones Falls on Rising Virus Instances, Hold Seng Susceptible to a Pullback

DOW JONES, HANG SENG INDEX OUTLOOK:Dow Jones slumped additional amid virus and stimulus issues, regardless of upbeat Microsoft ea

Indian Rupee, Nifty 50 Could Fall. Virus Instances Develop, Consumption Falters
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DOW JONES, HANG SENG INDEX OUTLOOK:

  • Dow Jones slumped additional amid virus and stimulus issues, regardless of upbeat Microsoft earnings
  • “Threat-off” sentiment is prevailing, weighing on crude oil, gold and risk-linked currencies
  • Hold Seng Index (HSI) appears to be like set to have entered a technical correction. Ant IPO in excessive demand

Dow Jones Index Outlook:

Dow Jones futures lengthen losses in early Asia buying and selling hours after falling three days in a row. The downward momentum appeared to have gained traction amid a fast rise within the quantity of recent coronavirus circumstances in a number of main economies. In the meantime, dwindling hopes for a US reduction package deal to be inked earlier than subsequent week’s presidential election additionally weighed on sentiment. Even sturdy Microsoft earnings didn’t raise investor confidence. Some 55 out of 62 S&P 500 index constituents, which launched earnings on October 27th, have overwhelmed analysts’ forecasts by way of incomes per share (EPS).

The US registered 74,323 new coronavirus circumstances on October 26th, marking a major rebound from 59,691 seen a day earlier than. Equally, the variety of new Covid-19 infections resurged in Germany and France on October 27th, at 11,409 and 33,417 respectively. But there seems to be lack of political willingness from the White Home to impose stricter social distancing measures earlier than the US election, rendering US equities weak to additional selloff ought to the virus scenario worsen.

US day by day improve of coronavirus circumstances

Dow Jones Falls on Rising Virus Cases, Hang Seng Vulnerable to a Pullback

Supply: Google

Crude oil costs traded decrease at US$ 38.90 on Wednesday as a second viral wave might have a larger-than-expected impression on the vitality demand outlook. Gold costs are consolidating at round US$ 1,905. Market sentiment tilted in direction of the draw back, with the risk-linked Australian and New Zealand Greenbacks, and the Norwegian Krone among the many worse performing G10 currencies on Wednesday open.

Asia-Pacific shares look set to commerce broadly decrease, with comparatively better-managed virus conditions serving to to cushion the draw back in opposition to exterior headwinds.

Chinese language fintech big Ant Monetary, possible the world’s largest IPO ever, has acquired overwhelming demand from buyers. The corporate was contemplating to shut the ebook at 5pm SGT at present, two days sooner than the unique plan. Ant will probably be listed in Shanghai and Hong Kong concurrently on November 5th.

Equities Forecast

Equities Forecast

Advisable by Margaret Yang, CFA

What’s the highway forward for equities this quarter?

On the macro entrance, Financial institution of Canada’s rate of interest choice and EIA’s crude oil stock information are amongst prime occasions. Discover out extra on our financial calendar.

Sector-wise, 7 out of 9 Dow Jones sectors closed within the purple, with 76.7% of the index’s constituents ending decrease on Tuesday. Industrials (-2.94%), financials (-2.26%) and vitality (-2.02%) have been among the many hardest hit, whereas data know-how (+0.68%) and client staples (+0.18%) have been faring higher.

Dow Jones Index Sector Efficiency 27-10-2020

Dow Jones Falls on Rising Virus Cases, Hang Seng Vulnerable to a Pullback

Supply: Bloomberg, DailyFX

Forex for Beginners

Forex for Beginners

Advisable by Margaret Yang, CFA

Why do rates of interest matter for currencies?

Technically, the Dow Jones index has decisively damaged down the 100-Day Easy Transferring Common (SMA) line at 27,550 after which the 61.8% Fibonacci retracement stage at 27,490 with sturdy downward momentum. Breaking these key helps might have opened the room for extra draw back in direction of the subsequent help ranges at 27,140 (the 76.4% Fibonacci retracement).

The MACD indicator fashioned a “Dying Cross” final week and costs have been trending decrease since. This means that bearish momentum is dominating for now. The index value continued to press down its decrease Bollinger Band, signaling sturdy promoting strain within the close to time period.

Dow Jones IndexEach day Chart

Dow Jones Falls on Rising Virus Cases, Hang Seng Vulnerable to a Pullback

Hold Seng Index Outlook:

HSBC (+4.81%) and Tencent (+4.19%) have been doing the heavy lifting to shed Hold Seng Index’s losses amid a broad selloff in different index constituents on Tuesday. The index could also be inclined to a short lived pullback amid souring sentiment in international markets. Ant Financials’ IPO has drawn a giant crowd and will drain liquidity from the broader markets earlier than the itemizing day. Given Ant’s big dimension, the mega IPO might weigh on index’s efficiency within the close to time period.

Technically, the HSI has possible entered a technical correction with an instantaneous help stage discovered at 24,530 – the 23.6% Fibonacci retracement. The 20-Day SMA line may additionally be seen as a dynamic help stage. Breaking under 24,530 might sign additional losses with an eye fixed on 24, 230 – the 38.2% Fibonacci retracement.

Hold Seng Index Each day Chart

Dow Jones Falls on Rising Virus Cases, Hang Seng Vulnerable to a Pullback

How to Use IG Client Sentiment in Your Trading

How to Use IG Client Sentiment in Your Trading

Advisable by Margaret Yang, CFA

Enhance your buying and selling with IG Consumer Sentiment Information

— Written by Margaret Yang, Strategist for DailyFX.com

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





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