NASDAQ 100, HANG SENG, NIKKEI 225 INDEX OUTLOOK:Nasdaq 100 index slumped post-Fed assembly, greenback ranged, crude oil climbedHo
NASDAQ 100, HANG SENG, NIKKEI 225 INDEX OUTLOOK:
- Nasdaq 100 index slumped post-Fed assembly, greenback ranged, crude oil climbed
- Hong Kong’s Grasp Seng Index (HSI) could open decrease, futures markets recommend
- Japan’s Nikkei 225 index fell 0.23% at open. BOJ, BoE charge selections in focus
Nasdaq 100 Index Outlook:
Nasdaq 100 index futures rebounded mildly after falling over 1.2% on Wednesday. This will likely set a blended tone for Asia-Pacific open. The FOMC assembly was largely inside expectations. The central financial institution signaled that it’s possible maintain the coverage charge unchanged till at the least 2023, with out promising any additional easing measures this time. The situations for the Fed to lift rates of interest embrace inflation stabilizing on the 2% long-term objective, and jobs market attaining full employment standing – each are unlikely to happen within the close to time period.
Fed members have revised up this yr’s median US GDP progress forecast to -3.7% from June’s forecast of -6.5%. In the meantime, the expansion forecasts for yr 2021 and 2022 have been barely revised all the way down to 4.0% and three.0% respectively.
Beneficial by Margaret Yang, CFA
How can central banks influence markets?
Financial projection of Fed Board members and Fed Financial institution presidents, Sep 2020
Supply: federalreserve.gov
Market reactions had been blended on the Fed assembly: the US Greenback index registered a 0.5% intraday swing, crude oil costs superior greater than 3%, whereas tech shares dragged the inventory markets decrease.
Asia-Pacific markets embrace a busy calendar day with the BOJ and BoE conferences within the highlight – each are anticipated to remain par. Moreover, Singapore’s Non-Oil Home Export (NODX), Australia’s unemployment charge, Financial institution of Indonesia’s rate of interest resolution and EU core inflation knowledge may also be carefully watched out for. Learn extra on our financial calendar web site.
Sectoral efficiency was fairly blended in a single day. Vitality (+4.05%), financials (+1.10%) and industrials (+0.99%) had been among the many main sectors, whereas info expertise (-1.56%), communication providers (-1.2%) and shopper discretionary (-1.02%) had been lagging ones.
S&P 500 Index Sector efficiency 16-9-2020
Supply: Bloomberg, DailyFX
Technically,the Nasdaq 100 discovered a robust assist at 11,070 – the 23.6% Fibonacci retracement – and has since rebounded (chart under). Holding above this degree could pave approach for additional upside in the direction of the quick resistance degree of 11,630 – the 20-Day Easy Transferring Common (SMA). The RSI indicator has retraced again to impartial ranges from an overbought territory above 70.0. The index could vary between 11,070 to 11,560 ready for contemporary catalysts.
Nasdaq 100Index – Each day Chart
Grasp Seng Index Outlook:
Hong Kong’s Grasp Seng Index (HSI) seems set to open decrease on Thursday, as merchants digest blended sentiment from the US buying and selling session. The index was consolidating at above 24,120 – the
38.2% Fibonacci retracement degree – prior to now two months. A right away resistance degree could be discovered at 24,800, a degree the place its 20- and 100-Day Easy Transferring Common (SMA) strains cross. The MACD indicator is about to kind a “Bullish Crossover”.
Grasp Seng Index – Each day Chart
Nikkei 225 Index Outlook:
The Nikkei 225 index appears to have taken little clues from the FOMC assembly final evening. The index opened mildly decrease and appears effectively supported at above 23,300 – a key resistance degree that now turned a key assist degree after a significant breakout.
Nikkei 225 Index – Each day Chart
Beneficial by Margaret Yang, CFA
Don’t give into despair, make a recreation plan
— Written by Margaret Yang, Strategist for DailyFX.com
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