Nasdaq 100 Pulls Again as Retail Gross sales Miss, Asia-Pacific to Prolong Decrease

DOW JONES, NIKKEI 225, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 indexes closed -0.79%, -0.71% and -0.91% respectively
• US retail gross sales progress contracted by 1.1% MoM in July, lacking market expectations
• The FOMC assembly minutes might be in focus in the present day. APAC markets look set to observe decrease

Nasdaq 100, US Retail Gross sales, FOMC Minutes, Asia-Pacific at Open:

Wall Avenue shares ended broadly decrease on Tuesday, with cyclically-oriented client discretionary (-2.31%), supplies (-1.21%) and industrials (-1.06%) main the decline. Defensive-linked healthcare (+1.12%), actual property (+0.14%) and client staples (+0.04%) outperformed. This can be attributed to profit-taking after the discharge of US retail gross sales progress figures, which fell largely in need of market expectations.

US retail gross sales contracted 1.1% MoM final month, in comparison with a -0.3% estimate. This implies that the stimulus– and reopening-fueled financial rebound might be dropping steam. A car provide scarcity and Delta variant could have additionally contributed to the decline, pointing to tepid progress outlook within the third quarter. This gave merchants a legitimate motive to dump some unrealized revenue, pulling indices from their file territory.

Wanting forward, traders are ready for the discharge of FOMC assembly minutes for particulars concerning the Fed’s tackle inflation and labor market circumstances. Though minor adjustments could also be noticed from the earlier month’s model, market individuals are nonetheless eager to seek out clues about when the Fed plan to begin tapering.

Chinese language equities listed within the US exchanges tumbled once more after Beijing ramped up regulatory clampdowns. The USSEC imposed stricter guidelines on Chinese language IPOs earlier this week. Alibaba, Baidu and JD.COM have been among the many worst performers.

Prime 10 Nasdaq 100 Constituent Efficiency 17-08-2021

Supply: Bloomberg, DailyFX

Asia-Pacific marketslook set to open on the backfoot. Futures in mainland China, Australia, Hong Kong, South Korea, Taiwan, Singapore and India are within the crimson, whereas these in Japan, Malaysia and Thailand are within the inexperienced.

Wanting forward, the RBNZ rate of interest choice lead the financial docket alongside UK and Eurozoneinflation knowledge. Discover out extra from the DailyFX calendar.

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index has probably entered a consolidative part, hesitating to breach a key resistance degree at 15,300 – the 127.2% Fibonacci extension. Costs breached the 20-day SMA line, exposing the subsequent help degree at 14,800 – the 100% Fibonacci extension. The bearish MACD indicator means that upward momentum could also be fading.

Nasdaq 100 Index – Each day Chart

Nikkei 225 Index Technical Evaluation:

The Nikkei 225 index stays in a “Descending Channel” fashioned since February. The ground and ceiling of the channel could also be seen as instant help and resistance ranges respectively. The general pattern stays bearish-biased, as recommended by the downward-sloped SMA traces. The MACD indicator fashioned a bearish crossover beneath the impartial midpoint, suggesting that promoting strain could also be resuming.

Nikkei 225 Index – Each day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index pulled again sharply to check an instantaneous help degree at 7,500 – the earlier resistance. The general pattern stays bullish-biased, as recommended by the consecutive larger highs and better lows fashioned over the previous few months. The MACD indicator fashioned a bearish crossover after hitting the trendline resistance, suggesting that promoting strain could also be prevailing.

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 Twitte