DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:Dow Jones, S&P 500 and Nasdaq 100 closed -1.36%, -0.87% and -0.06% respectively Rising inflation i
DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 closed -1.36%, -0.87% and -0.06% respectively
- Rising inflation issues spook markets, triggering broad revenue taking
- Shares in Australia and Hong Kong are positioned for losses following a bitter Wall Avenue lead
US Inflation, Commodity Costs, Revenue Taking, Asia-Pacific at Open:
Wall Avenue equities pulled again for a second day as inflation issues continued to dominate merchants’ thoughts. With copper and iron ore costs surging to report highs and Chinese language PPI determine hitting 6.8% YoY, fairness markets are underneath rising strain. Higher commodity costs might hinder progress and encourage central banks to withdraw financial stimulus at a sooner tempo. Apart from surging uncooked materials costs, rising wages and financial stimulus hopes are additionally pointing to larger inflation expectations.
Evidently the cyclical and worth sectors are now not proof against inflation angst, because the Dow Jones and S&P 500 indexes underperformed the Nasdaq 100 on Tuesday. Vitality, financials and client discretionary had been among the many worst performers in a single day, whereas uncooked supplies fared comparatively higher.
Subsequently, Wednesday’s US headline inflation and core readings will likely be carefully eyed by foreign exchange and fairness merchants. The market has already set excessive expectations for the (YoY) enhance within the worth ranges, with the headline charge determine to hit 3.6%. If the precise studying is available in larger than anticipated, the market might face one other wave of promoting. A lower-than-expected determine nonetheless, could alleviate strain on threat belongings.
Iron Ore 62% FE, CFR China Futures – COMEX
Chart from TradingView
Asia-Pacific markets are set for a weak open on Wednesday. Futures throughout Japan, Australia, South Korea, Singapore, Malaysia and Thailand are pointing to a decrease begin. The viral resurgence in India and the unfold of mutant strains stays a key concern for Asia-Pacific traders. This may occasionally submit a serious progress and reopening threat to the South and Southeast Asia area.
The Hold Seng Index (HSI) seems to be set to increase decrease after falling greater than 2% on Tuesday. Promoting was intensified after the US tech rout and information that Chinese language regulators are tightening grip on expertise giants. Monetary firms together with HSBC, AIA, ICBC and Ping An Insurance coverage appear to be probably the most prone to a selloff following a bitter US lead.
Australia’s ASX 200 index retreated from its report excessive on Tuesday, ending 1.06% decrease amid broad revenue taking. A small pullback in copper and iron ore costs in a single day could weigh on mining shares. The ASX 200 index opened modestly decrease, dragged by actual property (-1.06%), utilities (-0.68%) and financials (-0.36%) sectors. Info expertise (+1.10%) and healthcare (+0.31%) outperformed.
On the macro aspect, German and US inflation readings headline the financial docket alongside UK GDP knowledge and EIA crude stock report. Discover out extra from theDailyFX calendar.
Wanting again to Tuesday’s shut, all 9 Dow Jones sectors ended decrease, with 90% of the index’s constituents closing within the crimson. Vitality (-2.62%), financials (-2.43%) and client discretionary (-1.82%) had been among the many worst performers, whereas supplies (-0.23%) and knowledge expertise (-0.37%) registered small losses.
Dow Jones Sector Efficiency 11-05-2021
Supply: Bloomberg, DailyFX
Dow Jones Index Technical Evaluation
The Dow Jones index hit a key resistance stage at 34,920 (the 200% Fibonacci extension) and has retreated since. A right away help stage might be discovered on the 20-day SMA line (34,120), breaking which can open the door for additional losses with a watch on 33,320 – the 161.8% Fibonacci extension. Costs stay in an “Ascending Channel” as highlighted within the chart under, suggesting that the general development stays bullish-biased. A technical pullback appears to be underway nonetheless. The MACD indicator fashioned a bearish crossover and trended decrease, suggesting that downward momentum is constructing.
Dow Jones Index – Each day Chart
Hold Seng Index Technical Evaluation:
The Hold Seng Index (HSI) breached under the “Ascending Channel” as highlighted on the chart under, suggesting that the index could have resumed its downward trajectory. The 20- and 50-day SMA strains are about to cross under the 100-day line, forming a “Dying Cross”. This means that the medium-term development has seemingly turned bearish and additional losses could comply with on. The MACD indicator trended under the impartial midpoint, suggesting that downward momentum is prevailing.
Hold Seng Index – Each day Chart
ASX 200 Index Technical Evaluation:
The ASX 200 index fell into the “Rising Wedge” yesterday after briefly breaching above it. The ceiling of the “Rising Wedge” coincides with the 216.8% Fibonacci extension stage (7,126), pointing to robust promoting strain round this stage. A right away help stage might be discovered on the 20-day SMA line (7,060). The MACD indicator is trending decrease, suggesting that additional consolidation is probably going.
ASX 200 Index – Each day Chart
— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part under or @margaretyjy on Twitter
component contained in the
component. That is most likely not what you meant to do!nn Load your utility’s JavaScript bundle contained in the component as an alternative.www.dailyfx.com