Dow Jones Underpinned by Jobs and Housing Knowledge, Last Debate in Focus

Dow Jones Underpinned by Jobs and Housing Knowledge, Last Debate in Focus

DOW JONES, STRAITS TIMES INDEX OUTLOOK:Dow climbed on enhancing US information, shrugging off election safety issues30 out of 34

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DOW JONES, STRAITS TIMES INDEX OUTLOOK:

  • Dow climbed on enhancing US information, shrugging off election safety issues
  • 30 out of 34 S&P 500 corporations delivered optimistic earnings shock on Thursday
  • Singapore’s Straits Occasions Index (STI) might edge increased on opening-up hopes

Dow Jones Index Outlook:

Wall Road equities shrugged off earlier shocks on election safety investigations and closed 0.5% increased on Thursday. Higher-than-expected jobs and housing information helped raise optimism about an financial restoration. In the meantime, the continued fiscal stimulus talks stay in focus, nonetheless, the probability {that a} invoice might be handed earlier than the US election seems to be skinny and not using a blessing from the Senate.

The US current properties gross sales registered 6.54ok in September, marking its highest studying seen since 2006. On a month-on-month foundation, it grew by 9.36% (chart beneath). Stronger housing information might raise sentiment within the constructing supplies, monetary and development sectors.

Dow Jones Underpinned by Jobs and Housing Data, Final Debate in Focus

Supply: Bloomberg, DailyFX

The weekly US jobless claims got here in at 811ok, registering its lowest studying for the reason that Covid-19 outbreak. Earlier month’s determine was revised decrease to 866ok from 898ok, underpinning the resilience of the roles market.

Asia-Pacific markets appear to commerce in blended sentiment in early hours, with the haven-linked US Greenback and Japanese Yen climbing whereas the risk-linked Australian Greenback and Norwegian Krone erasing earlier features. The Nikkei 225 index opened marginally increased. The Australian market is closed for a vacation.

Dow Jones Underpinned by Jobs and Housing Data, Final Debate in Focus

Supply: Bloomberg, DailyFX

Equities Forecast

Equities Forecast

Advisable by Margaret Yang, CFA

What’s the highway forward for equities this quarter?

US company earnings continued to be upbeat. On Thursday, 30 out of 34 main US corporations launched better-than-expected outcomes (desk beneath). Up to now within the earnings season, greater than 80% of the S&P 500 constituents have overwhelmed their EPS forecasts.

On the political entrance, merchants are eyeing the ultimate presidential debate between Joe Biden and Donald Trump to be held at 9am native Singapore time on Friday. Markets appeared to have closely priced in a Biden-win situation, rendering them fragile to unwinding actions ought to the election end result flip towards expectations.

Sector-wise, 6 out of 9 Dow Jones sectors closed within the inexperienced, with 73% of the index’s constituents ending increased yesterday. Power (+3.57%) had a good rebound in a single day as crude oil costs climbed. Financials (+1.99%), industrials (+1.93%) and communication companies (+0.82%) had been additionally among the many high performers, whereas info expertise (-0.52%) and client staples -0.49%) had beenlagging.

Dow Jones Index Sector Efficiency 22-10-2020

Dow Jones Underpinned by Jobs and Housing Data, Final Debate in Focus

Supply: Bloomberg, DailyFX

Forex for Beginners

Forex for Beginners

Advisable by Margaret Yang, CFA

Why do rates of interest matter for currencies?

Technically, the Dow Jones index entered a consolidative interval since mid-October and its near-term development seems to be bearish-biased (chart beneath). It has examined a right away assist degree at 28,040 and has since rebounded. 28,040 can also be the 38.2% Fibonacci retracement as drawn on the chart beneath. An instantaneous resistance degree may be discovered at 28,390 – the 23.6% Fibonacci retracement. Breaking above 28,390 might open room for extra upside in direction of the following resistance degree at 28,960 – the earlier excessive.

Dow Jones IndexEach day Chart

Dow Jones Underpinned by Jobs and Housing Data, Final Debate in Focus

Straits Occasions Index Outlook:

Singapore’s Straits Occasions Index (STI) has rebounded from September’s low of two,450 on enhancing market sentiment and hopes for additional rest in Covid-19 measures. The variety of new coronavirus circumstances has fallen to single digits from low double digits, lifting hopes for extra lockdown unwindings. The Singapore authorities goals to enter a ‘section 3’ stage by year-end to permit extra actions to renew.

Technically, the STI seems to be supported by the 20-Day Easy Shifting Common (SMA) line, whereas capped by its 50-Day SMA lately (chart beneath). Breaking above the 50-Day SMA will doubtless open room for extra upside potential with a watch on 2,600.

Straits Occasions Index Each day Chart

Dow Jones Underpinned by Jobs and Housing Data, Final Debate in Focus

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— Written by Margaret Yang, Strategist for DailyFX.com

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





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