Nasdaq 100 Outlook and Netflix Earnings Miss Could Forged a Shadow on Grasp Seng and ASX 200

NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 closed -0.75%, -0.68% and -0.71% respectively
• Revenue-taking appeared to have ramped up forward of the height earnings season; Netflix missed each Q1 consumer progress and ahead steering
• Futures in Australia and Hong Kong are positioned for losses following a bitter lead

Netflix Earnings, Pandemic, Treasuries, Asia-Pacific at Open:

The Nasdaq 100 index futures prolonged decrease through the APAC morning hours as Netflix delivered a a lot lower-than-expected subscriber progress within the first quarter. The corporate added 3.98 million subscribers within the first quarter, in comparison with a 6.29 million forecast. This additionally marked a pointy decline from 15.77 million new customers seen in Q1 2020. Wanting forward, the corporate is forecasting just one million new customers within the second quarter, a stark miss from the 4.Four million anticipated. Netflix’s share worth tumbled 10% in afterhours commerce, setting a detrimental tone for the Asia Pacific buying and selling session.

Netflix’s earnings miss pointed to the danger that the speedy progress of expertise firms through the pandemic period could have reached an inflection level, and their progress is predicted to normalize as folks progressively return to the workplace. The Nasdaq 100 index is going through a “actuality verify” as strong earnings progress has doubtless been baked into its lofty valuation. This rendered the index susceptible to a technical correction ought to there be a slight miss.

Threat urge for food appeared tilted to the cautious aspect. US Treasury notes rallied, sending the 10-year charge to a five-week low. The haven-linked US Greenback rebounded barely, suggesting that demand for security is rising.

US Authorities Bonds 10-12 months Yield – Every day Chart

Chart by TradingView

Asia-Pacific markets are going through a difficult day forward, with futures throughout Japan, Australia, Hong Kong, Taiwan, Singapore, India and Indonesia pointing to open sharply decrease. Revenue-taking exercise could also be extra intense among the many cyclical sectors resembling power, financials, info expertise and shopper discretionary, whereas defensive ones could fare higher in the present day.

The Grasp Seng Index (HSI) appears set to tug again sharply on Thursday, with futures pointing to a 1.3% decline. Know-how shares, resembling Alibaba, Tencent, Meituan and Xiaomi, are among the many extra susceptible names in opposition to the backdrop of a tech selloff within the US market in a single day. Australia’s ASX 200 index appears set to fall for a second day as profit-taking exercise ramped up.

On the macro aspect, UK inflation information headlines the financial docket alongside Financial institution of Canada’s (BoC) rate of interest choice. Oil merchants will take a look at weekly crude stock report from the Power Info Administration (EIA) for clues in regards to the provide and demand relationship. Discover out extra from theDailyFX calendar.

Wanting again to Wednesday’s shut, 7 out of 11 S&P 500 sectors ended decrease, with 63% of the index’s constituents closing within the purple. Power (-2.66%), financials (-1.81%) and shopper discretionary (-1.22%) had been among the many worst performers, whereas defensive-linked utilities (+1.32%) and actual property (+1.12%) outperformed.

S&P 500 Sector Efficiency 20-04-2021

Supply: Bloomberg, DailyFX

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Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index has doubtless entered a technical correction after hitting a document excessive on the finish of final week. Close to-term momentum has turned bearish as indicated by the MACD indicator. The index has doubtless shaped an inverse “Head and Shoulders” sample, which can function a robust bullish reversal indicator. The sample means that there might be extra room to go up after ending the consolidation. A right away help stage may be discovered on the 20-day SMA line (13,645).

Nasdaq 100 Index – Every day Chart

Grasp Seng Index Technical Evaluation:

The Grasp Seng Index (HSI) has doubtless shaped an inverse “Head and Shoulders” chart sample. There might be extra draw back room if the sample completes. A right away resistance stage may be discovered on the 50-day SMA line (28,933), whereas a right away help stage may be discovered at 28,334 – the 23.6% Fibonacci retracement. The MACD indicator is trending larger beneath the impartial midpoint, suggesting that bullish momentum could also be constructing.

Grasp Seng Index – Every day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index retreated sharply from a multi-month excessive, underscoring sturdy promoting strain at across the 7,070 space. A right away help stage may be discovered at 6,906 – the 76.4% Fibonacci extension. The MACD indicator has shaped a bearish crossover, suggesting that near-term momentum has turned downward.

ASX 200 Index – Every day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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