S&P 500, HANG SENG INDEX, GOLD PRICE OUTLOOK:S&P 500 index climbed 0.78% to three,169 as Nasdaq hit all-time excessive Gr
S&P 500, HANG SENG INDEX, GOLD PRICE OUTLOOK:
- S&P 500 index climbed 0.78% to three,169 as Nasdaq hit all-time excessive
- Grasp Seng index goals to observe the US larger, buying and selling at 26,400 pre-market
- Gold value breaks US$ 1,800 resistance. Greenback falls
S&P 500 Index Outlook:
US markets shrugged off climbing virus instances throughout the nation and centered on the upcoming Q2 earnings season. The variety of confirmed Covid-19 infections within the US surpassed Three million, with California and Texas reporting their largest each day will increase in instances and deaths by far. Within the subsequent Three weeks, almost 70% of the S&P 500 firms will launch their 2Q earnings, bringing a ‘actuality examine’ to the US inventory markets.
Know-how corporations had been once more the most important winners final night time, with e-commerce Alibaba (+8.95%), social media Tencent (+6.60%) and semiconductor large TSMC (+3.1%) among the many prime performers. The Nasdaq Composite hit its all-time-high at 10,492. Earnings uncertainty ensuing from the Covid-19 pandemic maybe has led to surging demand for know-how corporations, which had been perceived to have benefited from the disaster as shoppers are shifting to on-line providers. E-commerce, gaming, steaming and communication providers had been among the many prime performers not too long ago.
Sector-wise, data know-how (+1.6%), shopper discretionary (+1.53%), financials (+1.06%) and communications (+0.93) had been among the many finest performers whereas supplies (-1.46%) was lagging behind (chart under).
The US Greenback index fell sharply in a single day, sending gold costs larger to US$ 1,810. That is the very best stage seen since Oct 2011. Technical evaluation suggests there may very well be extra upside for gold.
Supply: Bloomberg, DailyFX
S&P 500 Index –Technical Evaluation
The index is re-challenging a resistance zone at 3,180 – 3,200, which it failed to interrupt in early June and has subsequently entered into consolidation. The index is driving an uptrend which is highlighted by the Ascending Channel under. Total momentum stays bullish within the close to time period. A agency break above 3,200 will seemingly open room for extra upside in the direction of 3,360 – the 200% Fibonacci extension.
S&P 500 Index – Each day Chart
Grasp Seng Index Forecast:
Hong Kong’s Grasp Seng Index (HSI) inventory market benchmark goals to observe the US larger, with futures markets pointing to open at round 26,400. Technically, the HSI has firmly damaged an ‘Ascending Triangle’ and moved larger to problem the resistances at 26,000 after which 27,250, that are the 61.8% and 76.4% Fibonacci retracement ranges respectively. Tencent (+ 5.23%) was the very best performing inventory yesterday, which alone contributed to 90% of Grasp Seng’s each day improve.
Mainland China shares are nonetheless gaining momentum. The Shanghai Composite rose 1.74%, Shenzhen Composite up 1.84%. Whole quantity exceeded 1.5 trillion Yuan yesterday. The FTSE China A50 index traded at its 12-year excessive and will purpose to climb alongside broader Asia-Pacific markets at this time.
Technically, the Grasp Seng Index is driving a bull pattern with a right away resistance stage discovered at 27,250 – the 76.4% Fibonacci retracement stage. A direct assist stage will be discovered at 26,000.
Grasp Seng Index – Each day Chart
Gold Value Outlook:
Technically, gold costs are driving a bull pattern and will quickly problem its all-time-high final seen in September 2011 (chart under). A agency breakout above US$ 1,800 resistance has opened room for additional upside in the direction of US$ 1,872 – the 161.8% Fibonacci extension stage.
Gold – Month-to-month Chart
Beneficial by Margaret Yang
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— Written by Margaret Yang, Strategist for DailyFX.com
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