NASDAQ 100, ASX 200, HANG SENG INDEX OUTLOOK:APAC shares could rebound following a powerful lead on Wall Road, oil climbed to a 9
NASDAQ 100, ASX 200, HANG SENG INDEX OUTLOOK:
- APAC shares could rebound following a powerful lead on Wall Road, oil climbed to a 9-month excessive
- Senate Majority Chief Mitch McConnel hinted {that a} Covid-relief package deal could be across the nook
- Merchants are holding their breath for the FOMC assembly, the USD sank to a 2.5-year low
Threat-On Session, US Reduction Package deal, FOMC Assembly, Asia-Pacific at Open:
Asia-Pacific equities look set to open broadly larger after a ‘risk-on’ session on the Wall Road in a single day. US shares gained throughout all sectors as Home and Senate leaders continued their negotiation over a Covid reduction package deal on Tuesday night. In view of quickly climbing coronavirus instances throughout the nation and a softer job market atmosphere, lawmakers may face the urgency to strike a deal that’s wanted to help small enterprise loans, jobless advantages and vaccine distribution. Senate Majority Chief Mitch McConnell mentioned that they gained’t go away for the brand new yr with out an settlement.
Nikkei 225, ASX 200 and Grasp Seng Index futures are up 0.56%, 0.88% and 0.50% respectively, setting a optimistic tone for the remainder of the Asia-Pacific. Singapore’s Straits Instances Index is poised to open 0.78% larger.
Amongst Grasp Seng Index constituents, expertise and monetary sectors dragged the index decrease on Tuesday. Tencent (-1.93%), Alibaba (-2.23%), Meituan (-2.97%), HSBC (-0.85%), HKEX (-1.39%) have been among the many high losers yesterday. A powerful rally within the Nasdaq 100 index in a single day might give Hong Kong’s tech shares a lift.
Grasp Seng Index Sector Efficiency 15-12-2020
The Nasdaq 100 index jumped 1.25% and closed simply beneath its all-time excessive in a single day. The S&P 500 and Dow rebounded 1.29% and 1.13% respectively amid favorable sentiment. All 11 S&P 500 sectors ended larger, with 89.9% of the index’s constituents closing within the inexperienced on Tuesday. Utilities (+1.94%) , power (+1.92%) and supplies (+1.88%) have been among the many finest performers, whereas client staples (+0.23%) and communication providers (+0.70%) registered smaller positive factors.
S&P 500 Sector Efficiency 15-12-2020
Supply: Bloomberg, DailyFX
The DXY US Greenback index edged decrease amid energy within the British Pound, Canadian Greenback and Norwegian Krone. The Sterling was underpinned by an extension of the Brexit talks after EU and UK didn’t strike a deal to fulfill final week’s deadline. The commodity-linked Canadian Greenback and Norwegian Krone have been supported by rising crude oil costs, which have surged to a 9-month excessive.
Really useful by Margaret Yang, CFA
Why do rates of interest matter for currencies?
The US Greenback fell to a 2.5-year low forward of Wednesday’s FOMC assembly and the Federal Reserve rate of interest determination. A weaker USD hints that markets are in all probability anticipating an much more dovish stance from the central financial institution in view of worsening virus conditions throughout the nation.
DXY US Greenback Index – 4-Hour Chart
Chart from IG
Other than the FOMC assembly, core inflation charges from the UK and Canada, alongside US retail gross sales and Markit Manufacturing PMI figures are additionally among the many high occasions right now. Discover out extra on the DailyFX financial calendar.
Nasdaq 100 Technical Evaluation:
The Nasdaq 100 index seems to have rebounded from the 50% Fibonacci extension stage and is about to problem the 76.4% Fibonacci extension stage of 12,620. A right away help stage could be discovered at 12,410, the place the 20-Day Easy Shifting Common (SMA) line and the 61.8% Fibonacci extension stage intercept. The general development stays bullish-biased, as highlighted within the inexperienced “Ascending Channel” beneath.
Nasdaq 100 Index – Day by day Chart
Grasp Seng Index Technical Evaluation:
The Grasp Seng Index has entered a “Vary-bound” buying and selling situation since December as highlighted within the purple zone beneath. The MACD indicator shaped a “Demise Cross” and trended decrease since, reflecting bearish momentum. The decrease Bollinger Band could function an dynamic help stage for the close to time period, whereas the 20-Day Easy Shifting Common (SMA) line could be considered as an instantaneous resistance stage.
Grasp Seng Index – Day by day Chart
Really useful by Margaret Yang, CFA
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— Written by Margaret Yang, Strategist for DailyFX.com
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