DOW JONES, STRAITS TIMES INDEX OUTLOOK:US shares had been blended as buyers reshuffled their portfolios in response to vaccine in
DOW JONES, STRAITS TIMES INDEX OUTLOOK:
- US shares had been blended as buyers reshuffled their portfolios in response to vaccine information
- WTI Crude oil costs broke US$ 41.00, boosted by falling stockpiles and improved demand outlook
- Singapore’s Straits Occasions Index retraced from a 5-month excessive as revenue taking kicked in
Vaccine-led Rotation, Dow Jones, Singapore Shares:
The Dow Jones Industrial Common climbed 0.9% to 29,420 on Tuesday, reaching its highest stage since mid-February. The index completed simply 0.5% beneath its all-time excessive of 29,551 when it comes to the closing worth. An enormous leap in crude oil costs in a single day propelled vitality shares, which rose 4.6% on common. A a lot larger-than-expected fall in US crude stockpiles and vaccine hopes boosted vitality costs. In accordance with the American Petroleum Institute (API), US crude stock fell by 5.15 million barrels within the week ending November 6th, in comparison with a 0.89 million estimate.
A vaccine-led sectoral rotation continued to play out on Wall Avenue. Huge tech names had been going through revenue taking after registering astonishing positive factors this yr, whereas vitality, materials and industrial shares appeared to have regained buyers’ favor previously two days. Buying and selling in Asia-Pacific markets might mirror the US one right now as buyers proceed to reposition their portfolios in response to a serious breakthrough of the Covid-19 vaccine.
However, a powerful pandemic wave is sweeping the US and most elements of the EU. Greater than 130,000 new infections had been reported within the US on November 9th, and over 6.9 million new infections had been registered globally over the previous 14 days. The alarming virus pattern might weigh on development prospects into the fourth quarter, as it might take just a few months earlier than an efficient vaccine turns into publicly obtainable.
US fairness index futures had been oscillating between positive factors and losses, setting a blended tone for Asia-Pacific shares at open. Singapore shares opened mildly decrease, dragged by aviation, monetary and industrial sectors.
US New Coronavirus Circumstances Day by day
Supply: Google
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Sector-wise, eight out of 9 Dow Jones sectors closed within the inexperienced, with 73.3% of the index’s constituents ending larger on Tuesday. Vitality (+4.62%), industrials (+3.03%) and supplies (+2.57%) had been among the many greatest performers, whereas data know-how (-1.59%) was lagging.
Dow Jones Industrial Common Sector Efficiency 10-11-2020
Technically, the Dow Jones tried to problem its all-time excessive of 29,551 with sturdy upward momentum. A direct resistance stage will be discovered at February’s excessive (chart beneath), breaking above might open the room for extra upside potential with a watch on 30,000. Failing to interrupt the instant resistance might result in a technical pullback. The general pattern stays bullish, because the upward-sloped Easy Transferring Common (SMA) traces recommend.
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Dow Jones Index – Day by day Chart
Straits Occasions Index Outlook:
Singapore’s Straits Occasions Index (STI) registered large positive factors this week, with sentiment boosted by Biden’s election victory and vaccine information. Banks, aviation, actual property and industrial shares outperformed defensive-linked shopper staples and healthcare. Buying and selling quantity within the SGX was greater than doubled in comparison with its regular each day turnover yesterday, displaying sturdy danger urge for food amongst buyers.
Technically, the STI gave the impression to be briefly overbought, and thus could also be susceptible to a technical pullback. The index faces a right away resistance stage at 2,750 – the 50% Fibonacci retracement (chart beneath). The near-term momentum seems to bias in the direction of the upside.
Straits Occasions Index – Day by day Chart
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— Written by Margaret Yang, Strategist for DailyFX.com
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