Nasdaq 100 Hits All-Time Excessive, Cling Seng and ASX 200 Might Comply with

NASDAQ 100, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

• Nasdaq 100 closed in any respect time excessive, lifted by Apple, ASML, Fb and PayPal
• Cyclical-linked supplies, financials, industrials and vitality sectors underperformed
• Australian, mainland China and Hong Kong shares resume buying and selling amid favorable sentiment

Nasdaq 100, RBA Minutes, Reverse Repo, Asia-Pacific at Open:

Wall Road shares have been blended on Monday with the know-how sector outperforming. The Nasdaq 100 index rallied 0.92% to an all-time excessive of 14,128, lifted by large-cap shares resembling Apple (+2.46%), Fb (+1.66%) and Amazon (+1.11%). This can be attributed to earnings optimism and receding considerations in regards to the Fed tapering stimulus as June’s FOMC assembly is approaching.

The cyclical-oriented supplies, financials, industrials and vitality sectors pulled again nonetheless, casting a shadow over these industries throughout the APAC session. Buyers will regulate the RBA assembly minutes at the moment for additional insights into the central financial institution’s latest choices. The RBA is anticipated to change its quantitative easing program in July’s assembly as financial situations enhance.

Supply: Bloomberg, DailyFX

It’s value noting that demand for the Fed’s reverse repo facility surged to a report of $584 billion on Monday, reflecting swelling liquidity situations at monetary establishments (chart beneath). A reverse repo occurs when a central financial institution sells securities and raises money from the markets in an effort to present stability in lending flows. It normally occurs when there’s an excessive amount of liquidity (money) and demand for interest-bearing securities rises.

This hints that liquidity situations are in all probability ample sufficient to resist a gradual withdrawal of the Fed’s asset buy program. This statement additionally strengthens the case for a 2023 rate of interest hike if liquidity stays ample. To inventory traders, this can be excellent news as extreme liquidity is usually optimistic for threat property resembling equities.

Demand for Fed’s Reverse Repo Facility Hit a Report of 584 billion

Supply: Bloomberg, DailyFX

Asia-Pacific markets look set to commerce increased at the moment. Futures in Japan, Australia, Hong Kong, South Korea, Singapore and Malaysia are within the inexperienced. Mainland China and Hong Kong markets are reopening after the Dragon Boat Competition vacation. Sentiment could also be tilted to the upside following a optimistic lead from Wall Road.

Hong Kong’s Cling Seng Index (HSI) underperformed regional friends just lately after President Joe Biden banned funding in a widened checklist of 59 Chinese language corporations with alleged ties with protection or surveillance know-how sectors. Alibaba ADR climbed 1.09% throughout the US session, buying and selling at 1.3% premium over its Hong Kong itemizing. Equally, Tencent’s ADR is buying and selling at 0.39% premium over its Hong Kong counterpart. This may increasingly provide traders a possibility to slim the hole.

Australia’s ASX 200 index opened 0.4% and prolonged its record-scraping rally. 9 out of 11 ASX 200 sectors traded increased, with utilities (+0.77%), info know-how (+0.72%) and healthcare (+0.62%) outperforming.

Wanting forward, the RBA assembly minutes and Germany inflation knowledge dominate the financial docket alongside US retail gross sales figures. Discover out extra from DailyFX financial calendar.

Nasdaq 100 IndexTechnical Evaluation

The Nasdaq 100 index breached a key resistance stage of 14,013 and closed at an all-time excessive on Monday. Breaching this stage would probably intensify near-term shopping for strain and open the door for additional beneficial properties. The earlier resistance has now develop into a right away assist. The MACD indicator is trending increased, suggesting that upward momentum is prevailing.

Nasdaq 100 Index– Each day Chart

Cling Seng Index Technical Evaluation:

The Cling Seng Index didn’t breach the neckline of the “Double Backside” pattern and has since entered a technical pullback. Costs could proceed to vary sure between 28,300 and 29,350 ready for recent catalyst. The MACD indicator is flattening, suggesting that momentum could also be tilted to the draw back.

Cling Seng Index – Each day Chart

Chart by TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index prolonged its rally in direction of recent information. The index is difficult a right away resistance stage at 7,340 – the 161.8% Fibonacci extension. A profitable breach above this stage could open the door for additional upside potential with an eye fixed on 7,500 – the 200% Fibonacci extension. A failed try nonetheless, could lead to a pullback in direction of 7,194. The MACD oscillator trended increased, suggesting that upward momentum is dominating.

ASX 200 Index – Each day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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