Dow Jones Features, Nasdaq 100 Outperforms Amid Dovish Fedspeak. ASX 200 Might Rise

Dow Jones, Nasdaq 100, Fed, ASX 200, Nikkei 225, Kospi – Asia Pacific Indices Briefing

• Dow Jones good points, Nasdaq 100 outperforms amid dovish Fedspeak
• Asia-Pacific equities could rise, particularly ones skewed in the direction of tech
• Australia’s ASX 200 may very well be aiming to revisit 2020 peaks near-term

Monday’s Wall Avenue Buying and selling Session Recap

Equities on Wall Avenue gained, with the tech-heavy Nasdaq 100 main the cost, climbing 1.72% on Monday. The S&P 500 and Dow Jones Industrial Common gained 0.99% and 0.54% respectively. This possible mirrored demand for growth-oriented equities in comparison with worth ones. This adopted fading 2020 Fed fee hike bets as Treasury yields declined throughout a reasonably quiet session disadvantaged of key financial knowledge danger.

Ongoing dovish commentary from the central financial institution appeared to play a task right here. Atlanta Fed President Raphael Bostic famous that proper now, he doesn’t see that inflation might be enduring. That is as St. Louis Fed President James Bullard stated that they’re ‘not fairly there’ by way of being prepared to speak about tapering coverage. The central financial institution has been downplaying final month’s elevated CPI report, and markets have been taking discover.

Dow Jones Technical Evaluation

From a technical standpoint, Dow Jones futures are eyeing a key zone of resistance between 34352 and 34427 on the 4-hour chart under. Breaking larger may open the door to extending the bounce off rising assist from October. That might possible place the give attention to the all-time excessive at 35000. Having stated that, destructive RSI divergence exhibits that upside momentum is fading. This will precede a flip decrease.

Dow Jones Futures – 4-Hour Chart

Chart Created in TradingView

Tuesday’s Asia Pacific Buying and selling Session

With that in thoughts, Tuesday’s Asia-Pacific buying and selling session may see the optimistic sentiment from Wall Avenue carry over. That is notably in focus given a reasonably quiet day by way of knowledge. This will place Australia’s ASX 200 and Japan’s Nikkei 225 on the offensive. Sturdy good points in tech shares in a single day could provide additional upside momentum for South Korea’s KOSPI index and Taiwan’s TAIEX. The latter is extra concentrated within the semiconductor trade.

ASX 200 Technical Evaluation

On the 4-hour chart, the ASX 200 closed at its highest since Might 11th, pushing above the Might 18th peak. That’s putting the midpoint of the Fibonacci extension into focus at 7101. There was additionally a bullish crossover between the 20- and 50-period Easy Transferring Averages (SMAs). On stability, this might level for a near-term rosy image. That is additionally amid what seemed to be a false breakout below rising assist from 2020. Additional good points would expose the 2020 excessive.

ASX 200 – 4-Hour Chart

Chart Created in TradingView

— Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the feedback part under or @ddubrovskyFX on Twitter