DOW JONES, HANG SENG, GOLD PRICE OUTLOOK:Dow Jones faces promoting stress as tech weighs, testing a key help at 26,400 Dangle Sen
DOW JONES, HANG SENG, GOLD PRICE OUTLOOK:
- Dow Jones faces promoting stress as tech weighs, testing a key help at 26,400
- Dangle Seng Index breaks help at 25,000, consolidating at 50-Day Easy Transferring Common
- Gold costs surged above 1,900, reaching the best degree seen since Sep 2011
Dow Jones Industrial Common Outlook:
Main US inventory indices retraced on Friday amid a broad ‘threat off’ transfer. This got here in opposition to the backdrop of rising US-China geopolitical tensions over the closure of one another’s consulates in Houston and Chengdu. A navy standoff within the South China Sea has additional dampened threat urge for food, and despatched gold worths to a nine-year excessive of US$ 1,900.
Second-quarter company earnings have largely crushed market expectation, which helped to underpin the inventory market rally. This week, round 31% of S&P 500 element corporations will launch outcomes, together with Basic Electrical, Boeing, Qualcomm, PayPal, Fb, Basic Motors, Procter & Gamble, Apple, Amazon, Alphabet, Ford, Exxon Mobil and Chevron. Company America could proceed to ship extra constructive surprises, however this may also imply that there shall be lack of help after the earnings seasonpeak. This renders the inventory market prone to a pullback once we enter into the month of August.
There are additionally a few excessive threat occasions this week, together with the Fed assembly in addition to second-quarter GDP knowledge from the US and Germany.
Sector–sensible, financials (-0.76%), power (-0.65%), healthcare (-0.43%) had been among the many worst performers whereas communication companies (+0.58%), shopper discretionary (+0.21%) and shopper staples (+0.06%) had been extra resilient (chart beneath).
Dow Jones Sector Efficiency 24-7-2020
Supply: Bloomberg, Dailyfx
Technically, the Dow Jones has fallen to a key help degree at 26,400, which is the decrease certain of an ‘ascending channel’ shaped since late March (chart beneath). Breaking beneath this degree might result in additional draw back in the direction of its 50-Day Easy Transferring Common (SMA) at 26,100.
Dow Jones – Day by day Chart
Dangle Seng Index Outlook:
The Dangle Seng Index (HSI) inventory market benchmark broke a key 25,000 help on Friday, and thus in all probability opened room for extra draw back within the close to time period. HSI futures are buying and selling at round 24,800 this morning, beneath its 50-Day SMA line. Rapid help may very well be discovered at
24,370 – the 200-Day SMA.
Sector–sensible, Dangle Seng was primarily dragged down by Industrial & Business (-3.10%) and Finance (-1.91%) names on Friday. Tencent misplaced 5.21%, contributing 28% of the index’ every day change.
Dangle Seng Index Sector Efficiency 24-7-2020
Dangle Seng Index – Day by day Chart
Gold Costs Outlook:
Gold costs surged to a nine-year excessive at US$ 1,913 on Monday, propelled by rising demand for security because the US-China relationship deteriorates. The state of affairs within the South China Sea is fastidiously watched by merchants, who could eye gold, Japanese Yen, and Treasuries as safe-havens and hedging instruments in opposition to fairness market dangers.
Technically, gold is using an ascending pattern in the direction of its all-time excessive seen in Sep 2011. Nevertheless, as the worth went up fairly rapidly, it might additionally face a technical correction on its technique to increased highs.
Gold – Weekly Chart
Really useful by Margaret Yang
Don’t give into despair, make a sport plan
— Written by Margaret Yang, Strategist for DailyFX.com
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