Nasdaq 100 Rebounds as US Greenback Hits an 8-Month Excessive, APAC to Open Larger

NASDAQ 100, NIKKEI 225, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 indexes closed -0.19%, +0.13% and +0.51% respectively
• The US Greenback prolonged greater amid rising tapering expectations, higher jobless claims knowledge
• Asia-Pacific markets are positioned to open greater, however sentiment stays fragile

Tapering, US Greenback, Jobless Claims, China Shares Plunge, Asia-Pacific at Open:

Wall Avenue equities closed blended on Thursday as traders assessed lingering viral considerations and the prospect of diminished central financial institution stimulus. The FOMC assembly minutespointed to a potential begin of tapering stimulus by the tip of this yr, spurring revenue taking. The DXY US Greenback index climbed for a fourth day to 93.56, weighing on commodity costs.

The Nasdaq 100 index climbed 0.51% to 14,933.94, lifted by NVIDIA (+3.98%), Microsoft (+2.08%) and ASML (+1.17%). The flareup of the Delta variant around the globe could result in extra spending on digital units and on-line providers, buoying semiconductor and software program firms.

Asia-Pacific markets could proceed to path behind their US friends as a consequence of lingering viral considerations and a widening crackdown on non-public sectors in mainland China. Chinese language shares listed within the US tumbled additional, together with Tencent (-6.05%), Alibaba (-6.85%) and Nio (-6.61%). Mainland and Hong Kong shares look set to consolidate additional till the regulatory skies are clearer.

Nasdaq 100 Prime 10 Inventory Efficiency 19-08-2021

Supply: Bloomberg, DailyFX

In the meantime, weekly preliminary US jobless claims knowledge got here above expectations. Some 348ok unemployment claims have been filed final week, in comparison with a 363ok estimate. The earlier week’s determine was revised down barely to 377ok from 487ok. The unemployment claims have been declining over the previous few months, underscoring the resilience within the labor market in opposition to a viral resurgence.

US Weekly Jobless Claims

Supply: Bloomberg, DailyFX

Asia-Pacific markets look set to open blended on Thursday. Futures in Japan, Australia, Hong Kong, South Korea, Taiwan, Singapore and India are within the inexperienced, whereas these in mainland China, Malaysia and Thailand are within the purple.

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index dived under the 20-Day SMA line and has possible entered a technical pullback. A right away assist degree might be discovered at 14,809– the 100% Fibonacci extension. Breaching this degree could open the door for additional losses with a watch on 14,415 – the 78.6% Fibonacci extension. The bearish MACD indicator means that downward momentum is constructing.

Nasdaq 100 Index – Every day Chart

Nikkei 225 Index Technical Evaluation:

The Nikkei 225 index stays in a “Descending Channel” shaped since February. The ground and ceiling of the channel could also be considered as instant assist and resistance ranges respectively. The general pattern stays bearish-biased, as urged by the downward-sloped SMA traces. The MACD indicator is trending under the impartial line, suggesting that upward momentum could also be weak.

Nikkei 225 Index – Every day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index breached under a key assist degree at 7,500 – the 200% Fibonacci extension. This will open the door for additional draw back potential with a watch on 7,340 for assist. The MACD indicator shaped a bearish crossover and trended decrease, suggesting that downward momentum is gaining traction.

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