Dow Jones Futures Climb With Nikkei 225 and Hold Seng, LDP Election in Focus

DOW JONES, NIKKEI 225, HANG SENG INDEX OUTLOOK:

• Dow Jones futures climb 0.64% at Asia open, extending Friday’s good points. VIX falls
• Japan’s Nikkei 225 index opens greater, trying to interrupt a resistance at 23,300
• Hong Kong’s Hold Seng Index (HSI) might open greater alongside the broader markets

Dow Jones Index Outlook:

The Dow Jones Industrial Common (Dow) futures are climbing at early Asia hours, after rising 0.41% on Friday. Merchants might trip the conventional ebb and circulation with a comparatively quiet macro calendar at the moment. This Wednesday’s FOMC assembly and Thursday’s BOJ andECB rate of interest choices are among the many prime occasions this week and thus will even be carefully watched out.

Japan’s Liberal Democratic Get together’s (LDP) election, which decides who will change Prime Minister Shinzo Abe after his resignation, is held in Tokyo at the moment. The chief cupboard secretary Yoshihide Suga, a candidate perceived as common, is more likely to maintain Abe’s coverage largely unchanged if elected. Any sudden end result, nevertheless, is more likely to dampen threat urge for food and spook the Japanese Yen.

The VIX volatility index has fallen for a fifth consecutive session to 30.99, suggesting that the current technical pullback is likely to be one other wholesome correction amid a mid-term bull run.

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Sector–smart, industrials (+1.5%), financials (+0.84%) and shopper staples (+0.29%) had been among the many higher performers on Friday, whereas vitality (-0.59%) and knowledge know-how (-0.03%) had been lagging behind.

Dow Jones Sector efficiency 10-9-2020

Supply: Bloomberg, DailyFX

Technically,the Dow has rebounded on the decrease certain of its Bollinger Band (chart beneath). An instantaneous assist stage may be discovered at 27,500 – the 50-Day Easy Transferring Common (SMA). Breaking this stage will doubtless open the room for additional draw back in direction of the 23.6% Fibonacci retracement stage at 26,600. An instantaneous resistance stage may be discovered at 28,170 – the 20-Day SMA.

Dow Jones Index – Each day Chart

Nikkei 225 Index Outlook:

Japan’s Nikkei 225 index has opened greater to start out the buying and selling week. Right now’s LDP election will probably be carefully watched by merchants amid a seemingly low-volatility session. The USD/JPY was ranging between a slim zone between 106.0-106.four up to now few days, giving few clues to the fairness merchants.

Technically, the Nikkei 225 is trying to interrupt a key resistance stage at 23,300 – the higher ceiling of its “Ascending Triangle” as proven within the chart beneath. A significant breakthrough will doubtless open room for additional upside in direction of 24,000.

Nikkei 225 Index – Each day Chart

Hold Seng Index Outlook:

Hong Kong’s Hold Seng Index (HSI) might open mildly greater alongside the broader Asia-Pacific markets as volatility index (VIX) continues to float decrease.

Technically, the HSI has damaged down the upward pattern as indicated within the chart beneath. It has since entered a bearish pattern and has examined a key assist stage at 24,100 – the 38.2% Fibonacci retracement. The MACD indicator stays in a bearish setup and developments decrease, suggesting extra consolidation forward earlier than market reaches an actual backside.

Hold Seng Index – Each day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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