DOW JONES, HANG SENG INDEX OUTLOOK:Dow Jones futures might lead Asia-Pacific shares increased, the US Greenback fellChina 3Q GDP,
DOW JONES, HANG SENG INDEX OUTLOOK:
- Dow Jones futures might lead Asia-Pacific shares increased, the US Greenback fell
- China 3Q GDP, industrial manufacturing, retail gross sales figures are in focus
- Hold Seng Index (HSI) seems set to open mildly increased, dealing with a minor resistance at 24,400
Dow Jones Index Outlook:
A string of key Chinese language information might set the tone for Asia-Pacific equities, in addition to risk-linked Australian and New Zealand {Dollars}. Economists foresee Chinese language financial progress accelerated to five.2% YoY in Q3 from 3.2% in Q2. September’s industrial manufacturing and retail gross sales information will even be carefully watched for clues into China’s supply- and demand-side restoration from the pandemic. Retail gross sales are forecasted to increase at 1.8% YoY, whereas industrial manufacturing rises 5.8% YoY. For each, that may be their quickest tempo in 9 months.
Dow Jones futures climbed 0.36% throughout early Asia buying and selling hours, in anticipation of higher Chinese language information and speeches from Fed Chair Powell and ECB President Lagarde later in the present day. US company earnings continued to indicate sturdy momentum, which can shelter inventory markets in opposition to election and stimulus dangers.
China GDP Progress YoY – Forecast
Supply: DailyFX
On the macro aspect, this week’s key market occasions embody:
- October 19th(Monday):
- RBA assembly minutes
- Chinese language information: Q3 GDP progress fee, industrial manufacturing, retail gross sales
- Fed chair Jerome Powell speech, ECB president Christine Lagarde speech
- October 20th (Tuesday): Chinese language home worth index, US housing begins
- October 21st (Wednesday):
- UK inflation, ECB president Christine Lagarde speech, Canada inflation
- EIA Cushing crude oil shares change
- October 22th (Thursday):
- Germany shopper confidence,
- US preliminary jobless claims, present residence gross sales
- October 23th (Friday):
- New Zealand inflation, Japan inflation
- Markit manufacturing PMIs from Germany, the UK, the EU and the US
Advisable by Margaret Yang, CFA
What does it take to commerce round information?
The US corporate earnings have fared properly up to now. Greater than 80% of S&P 500 corporations, which have launched their earnings up to now, have overwhelmed analysts’ forecasts. On Friday, 5 out of seven corporations launched better-than-expected earnings (desk under). Worldwide Enterprise Machine (IBM) will unfold outcomes on Monday, adopted by Procter & Gamble and Netflix on Tuesday.
Sector-wise, solely Three out of 9 Dow Jones sectors closed within the inexperienced, with just one third of the index’s constituents ending increased. Industrials (+1.29%), healthcare (+0.21%) and shopper staples (+0.01%) have been among the many higher performers, whereas power (-0.84%) and financials (-0.23%) have been lagging.
Dow Jones Index Sector Efficiency 16-10-2020
Supply: Bloomberg, DailyFX
Advisable by Margaret Yang, CFA
What does it take to commerce round information?
Technically, the Dow appeared to have entered right into a consolidative interval after coming off a six-week excessive. It has examined a right away assist degree at 28,390 – the 23.6% Fibonacci retracement (chart under) and has since rebounded. Breaking under this assist might open room for extra draw back potential in the direction of 28,040 – the 38.2% Fibonacci retracement.
The general development seems bullish-biased, as upward-sloped 20- and 50-Day Easy Shifting Common (SMA) traces counsel. The MACD indicator, nonetheless, is prone to type a ‘bearish cross’ over, suggesting that upward momentum is likely to be fading.
Dow Jones Index – Every day Chart
Hold Seng Index Outlook:
Hong Kong shares might trip the tailwind of upper US futures and Chinese language information on Monday. A falling US Greenback might level to a different ‘danger on’ session for buying and selling, particularly amongst monetary and know-how shares. CCB (+5.7%), ICBC (+4.25%), HSBC (+0.84%), Financial institution of China (+3.2%), Tencent (+0.91%), Xiaomi (+3.12%) and Alibaba (+3.23%) have been among the many greatest contributor to the index’s positive aspects on Friday.
Technically, the HSI has additionally seemingly entered a short consolidation, with a right away assist degree discovered at 24,065 – the 38.2% Fibonacci Retracement (chart under). The MACD indicator has additionally pointed to a weakening momentum just lately. Rapid resistance ranges could be discovered at 24,400 (50-Day SMA) and 24,700 (100-Day SMA) respectively.
Hold Seng Index – Every day Chart
Advisable by Margaret Yang, CFA
Don’t give into despair, make a sport plan
— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part under or @margaretyjy on Twitter