Dow Jones Rebound Could Lead Dangle Seng Increased, Netflix Earnings Miss

DOW JONES, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 indexes closed +1.62%, +1.52% and +1.23% respectively
• Cyclical sectors outperformed defensive ones as viral issues eased
• Hong Kong’s Dangle Seng Index could rebound after falling 0.84% on Tuesday

Dow Rebound, Netflix Earnings, Dangle Seng Index, Asia-Pacific at Open:

Wall Avenue shares rebounded sharply on Tuesday, erasing most of Monday’s losses as buyers shrugged off viral issues and refocused on the reflation trades. Cyclical-oriented industrials, financials and shopper discretionary have been among the many finest performing sectors. The tech-heavy Nasdaq 100 gained 1.23%.

Netflix reported second quarter outcomes that fell in need of market expectations. Its share value fell greater than 3% through the after-hour commerce earlier than paring losses. EPS got here in at $3.11, in comparison with a $3.36 forecast. Paid web subscribers additions of 1.54 million was the 1.19 million estimate nevertheless. The corporate posted a tempered 3Q steerage for 3.5 million new subscribers, which is sort of 40% decrease than consensus. This will put stress on its value as buyers have to regulate their expectations for subscriber progress reacceleration within the second half when new content material is launched.

Supply: CNBC

Trying forward, the Westpac main index dominates the financial docket at the moment alongside the Australia’s retail gross sales progress determine. Discover out extra from the DailyFX financial calendar.

Asia-Pacific markets are positioned for a combined begin of the day. Futures in Japan, Australia, Hong Kong, Taiwan, Singapore and India are within the inexperienced, whereas these in mainland China, South Korea, Taiwan, Malaysia and Thailand are within the crimson.

Hong Kong’s Dangle Seng Index (HSI) misplaced 2.55% to this point this week amid a renewed wave of promoting from mainland buyers. Some HK$ 4.69 billion web Southbound outflows have been registered on Tuesday, following Monday’s HK$ 1.78 billion (chart under). To date this month, mainland buyers have bought HK$ 25 billion price of Hong Kong shares, reflecting a weakening urge for food as Beijing tightened regulatory curbs on giant tech corporations. The near-term sentiment for the HSI could also be tilted to the draw back.

Dangle Seng Index vs. Every day Southbound Web Stream

Supply: Bloomberg, DailyFX

Trying again to Tuesday’s shut, all 9 Dow Jones sectors ended larger, with 86.7% of the index’s constituents closing within the inexperienced. Industrial (+3.3%), financials (+2.29%) and shopper discretionary (+1.89%) have been among the many finest performer, whereas shopper staples (+0.12%) trailed behind.

Dow Jones Sector Efficiency 20-07-2021

Supply: Bloomberg, DailyFX

Dow Jones Index Technical Evaluation

The Dow Jones index pulled again from a key resistance stage at 34,920 and has entered a technical correction. The index has probably shaped a “Triple High” chart patten after failing to breach this stage for 3 makes an attempt. A “Triple High” chart sample flags the danger of a serious pattern reversal if costs break the supporting trendline as proven on the chart under. Bearish MACD indicator additionally means that upward momentum could also be fading.

Dow Jones Index – Every day Chart

Dangle Seng Index Technical Evaluation:

The Dangle Seng Index seems set to rebound from a direct assist stage of 27,150, doubtlessly forming a “Double Backside” chart sample. The general pattern stays bearish-biased nevertheless, because the SMA strains have shaped a “Dying Cross” and trended decrease. The MACD indicator has dived under the impartial line, suggesting that the index could also be below near-term promoting stress.

Dangle Seng Index – Every day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index is buying and selling in a decent vary between 7,230-7,370, ready for contemporary catalysts for a breakout. The general pattern stays bullish-biased, as steered by the consecutive larger highs and better lows shaped over the previous few months. A significant resistance stage could be discovered at round 7,500. The MACD indicator is trended decrease, suggesting costs could proceed to vary sure within the close to time period.

ASX 200 Index – Every day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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