Nasdaq 100 Futures Drop on Blended Tech Earnings, Hold Seng and ASX 200 Could Fall

NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 closed +0.71%, +0.68% and +0.49% respectively
• US Q1 GDP got here in at 6.4% QoQ, beating expectations.
• Fb, Apple and Amazon beat earnings forecasts, whereas eBay and Twitter upset
• Futures in Australia and Hong Kong are positioned for losses amid viral considerations

US Tech Earnings, US GDP, Pandemic, Asia-Pacific at Open:

Nasdaq 100 index futures fell barely throughout early APAC buying and selling hours after gaining 0.49% on Thursday. Traders are assessing stronger-than-expected US knowledge and a combined set of tech earnings. In the meantime, a viral resurgence in India stays a key concern for Asia-Pacific traders.

US GDP grew at 6.4% within the first quarter this 12 months, beating market expectation of 6.1%. Information confirmed that demand is outpacing provide as consumption picked up strongly, signaling {that a} wholesome restoration is underway. In the meantime, the Federal Reserve remained dovish-biased on the FOMC assembly, exhibiting no rush to regulate its financial coverage in the meanwhile. An accommodative central financial institution could proceed to assist the inventory market’s report rally.

The Nasdaq 100 index seemed to be going through a “actuality test” as robust earnings have doubtless been baked into its lofty valuation. Final evening, Fb rallied 7.3% to a report excessive after releasing strong earnings. Apple’s share value erased profit-driven good points as chip scarcity considerations weighed on its outlook. eBay declined 10% after an earnings miss whereas Amazon climbed 2.5% throughout the after-hour commerce on robust income good points. Twitter tumbled 11% in afterhours amid a tepid outlook.

A combined set of tech earnings pointed to the danger that the speedy development of expertise corporations throughout the pandemic period could have reached an inflection level, and their development is anticipated to normalize as folks progressively return to the workplace.

US GDP Annualized Development Charge QoQ

Supply: DailyFX

Asia-Pacific markets are going through a difficult day forward, with futures throughout Japan, Australia, Hong Kong, South Korea, Taiwan, Singapore and India pointing to open mildly decrease. A viral resurgence in India stays a significant concern for Asia-Pacific traders because the nation’s each day Covid-19 instances surged to a report excessive of 379,308 on April 28th, exhibiting no indicators of abating anytime quickly. This may occasionally publish a significant development and reopening danger to neighboring economies within the South and South East Asia area.

The Hold Seng Index (HSI) appears set to tug again barely on Friday, with futures pointing to a 0.25% decline. Chinese language regulators summoned 13 expertise corporations, reminiscent of Tencent and ByteDance, for a “supervision interview” on Thursday. This marked a step additional to tighten rules on the expertise sector amid a wave of anti-monopoly campaigns. Australia’s ASX 200 index appears set to retreat barely from a 14-month excessive.

On the macro aspect, Chinese language NBS Manufacturing PMI headlines the financial docket alongside Euro Space GDP and US core PCE value index readings. Discover out extra from theDailyFX calendar.

Trying again to Thursday’s shut, 9 out of 11 S&P 500 sectors ended larger, with 77.6% of the index’s constituents closing within the inexperienced. Communication providers (+2.75%), financials (+1.82%) and power (+1.11%) have been among the many finest performers, whereas healthcare (-0.39%) and data expertise (-0.03%) trailed.

S&P 500 Sector Efficiency 29-04-2021

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index has doubtless entered a consolidative interval after hitting a report excessive on April 16th. Upward momentum seems to be fading as indicated by the MACD indicator. The index has doubtless shaped an inverse “Head and Shoulders” sample, which is often perceived as a powerful bullish reversal indicator. The sample means that there may very well be extra room to go up after ending the consolidation. A right away assist stage might be discovered on the 20-day SMA line (13,895).

Nasdaq 100 Index – Each day Chart

Hold Seng Index Technical Evaluation:

The Hold Seng Index (HSI) has doubtless shaped an “Ascending Triangle” as highlighted on the chart under. A profitable break above the “Ascending Triangle” could sign additional upside potential with a watch on 29,171 – the 61.8% Fibonacci retracement. A right away resistance stage might be discovered at 29,290 – the 50% Fibonacci retracement. The RSI indicator is trending upwards, suggesting that bullish momentum could also be constructing.

Hold Seng Index – Each day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index seems to be going through robust promoting strain at 7,070 – the 100% Fibonacci extension. A profitable breach above this stage could open the door for additional upside potential with a watch on 7,260 – the 127.2% Fibonacci extension stage. A right away assist stage might be discovered at 7,030 – 20-day SMA line. The MACD indicator has shaped a bearish crossover, suggesting that near-term momentum has turned downward.

ASX 200 Index – Each day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part under or @margaretyjy on Twitter