DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:Dow Jones futures edged decrease amid stimulus and political uncertaintiesGrasp Seng
DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:
- Dow Jones futures edged decrease amid stimulus and political uncertainties
- Grasp Seng Index (HSI) surged 1.4% as Shanghai gained, difficult a key resistance at 24,450
- Australia’s ASX 200 index ranged at round 6,100, upward momentum slowed
Dow Jones Index Outlook:
Dow Jones futures are buying and selling barely decrease at Asia mid-day hours, as profit-taking actions ramp up following final week’s massive positive aspects. Market individuals are maybe shrugging off current election-related uncertainty and look past for post-election stimulus hopes and the Q3 US earnings season.
In keeping with Factset stories, analysts have revised up S&P 500 earnings to now see a decline of -20.5% YoY in Q3 2020, in comparison with the -25.3% forecast seen in June. That is primarily attributable to upward revisions to EPS estimates and optimistic EPS surprises. Uncertainty nonetheless stays for the upcoming earnings season, as fewer corporations have issued EPS steerage in comparison with the years earlier than.
Supply: factset
On the macro aspect, this week’s key market occasions embrace:
- October 12th (Monday): China new Yuan loans, ECB President Lagarde speech
- October 13th (Tuesday): China steadiness of commerce, Germany inflation, UK employment change, US inflation
- October 14th (Wednesday): Singapore superior Q3 GDP, MAS coverage assertion, South Korea price choice
- October 15th (Thursday): Australia unemployment price, China inflation, Indonesia steadiness of commerce, US preliminary jobless claims, EIA crude stock report
- October 16th (Friday): Eurozone core inflation, US retail gross sales, US College of Michigan shopper sentiment
Really helpful by Margaret Yang, CFA
What does it take to commerce round information?
Asia-Pacific markets have been blended on Monday, with mainland China and Hong Kong main the positive aspects. Japan, Thailand and Malaysia equities drifted decrease. Australia’s ASX 200 index fluctuated at round 6,100 because the Australian Greenback fell.
Sector-wise, data know-how (+1.23%), communication companies (+1.11%) and shopper staples (+0.62%) have been among the many greatest performers in Dow Jones Industrial Common final Friday. Vitality (-1.62%), financials (-0.10%) and supplies (-0.04%) have been lagging.
Dow Jones Index Sector Efficiency 9-10-2020
Supply: Bloomberg, DailyFX
Really helpful by Margaret Yang, CFA
Don’t give into despair, make a sport plan
Technically, the Dow Jones index seems to be set to increase its upward trajectory after the formation of a bullish “AB=CD” sample in September. It has since damaged above its 20- and 50-Day Easy Shifting Common (SMA) strains and goals for extra upside progress. The Bollinger Bands indicator has widened just lately as worth assessments its higher certain, which can be perceived as an instantaneous resistance degree. The near-term pattern seems bullish-biased, because the MACD indicator suggests.
Dow Jones Index – Each day Chart
Grasp Seng Index Outlook:
Grasp Seng Index (HSI) surged 1.4% on Monday, led by tech names Tencent (+2.41%), Xiaomi (+4.77%) and Alibaba (+1.75%). At the moment, the PBoC – China’s central financial institution – set its every day yuan fixing at 6.7126, weaker than most analysts’ forecasts. The motion was in all probability taken to deal with the forex’s current pattern after it registered a 7% acquire in opposition to the Dollar prior to now 4 months.
Technically, HSI is shifting upwards after the formation of a bullish “AB=CD” sample, just like the case of Dow Jones and S&P 500 index. It’s now going through an instantaneous resistance degree at 24,450 – the 76.4% Fibonacci retracement. 24,450 can be the place its 50-Day SMA lies. Breaking above 24,450 will doubtless open room for extra upside potential in direction of 24,900 – the earlier excessive.
Grasp Seng Index – Each day Chart
ASX 200 Index Outlook:
Australia’s ASX 200 index has doubtless come to an instantaneous resistance degree of 6,100 – the place it tried to interrupt for few occasions since June 2020. Its upward momentum as slowed down just lately, based on the MACD indicator. A direct help degree may very well be discovered at 6,000, the place its 50-Day SMA lies. Breaking above the important thing resistance of 6,100 could open room for extra positive aspects with a watch on 6,220.
— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part beneath or @margaretyjy on Twitter