Nasdaq 100 Rebounds with Falling USD. Will Grasp Seng, ASX 200 Comply with?

NASDAQ 100, HANG SENG, ASX 200, ASIA-PACIFIC MARKET OUTLOOK:

• US fairness indexes had a whipsaw session and closed marginally increased; small-tech outperformed
• Grasp Seng Index surged to a 12-month excessive with monetary and telco giants main the beneficial properties
• Falling USD and yields underpinned commodity costs, WTI crude oil hit US$ 53.3

USD, Grasp Seng, Nasdaq 100, ASX 200, Asia-Pacific Shares at Open:

The US Greenback retreated from a two-week excessive and the Treasury yieldcurve flattened barely in a single day, providing a reduction rebound to inventory markets. All three main US indices ended barely increased after a uneven session, and small-cap tech shares loved a good rally. The Russell 2000 index jumped 1.77% to a recent report excessive.

A weakening USD underpinned commodity costs, sending WTI crude oil costs to 11-month highs. Gold and silver costs additionally rebounded alongside base metals resembling iron ore, copper and nickel. Asia-Pacific shares look set to open blended, with vitality, mining and materials sectors outperforming.

South Korea’s Kospi index might face headwind from the newest unemployment fee print, which got here in at a 10-year excessive of 4.6% within the wake of coronavirus outbreak. The studying is much above economists’ forecast of 4.1%, reflecting that the labor market is deteriorating at a faster-than-expected tempo. Malaysia has declared a state of emergency on Tuesday after imposing a 14-day lockdown on its capital metropolis and a number of other states. This may increasingly undermine the efficiency of aviation, tourism, journey, F&Band client discretionary sectors as they’re most weak to lockdowns and the pandemic’s impression.

Australia’s ASX 200 index opened mildly decrease and will commerce in a good range-bound situation at present. Materials and vitality shares had been increased, whereas expertise and financial institution shares had been lagging. The Australian Greenback rebounded to 0.7778 towards the Buck, trying set to renew its upward trajectory after a short pullback.

Hong Kong’s Grasp Seng Index jumped 1.35% and closed at 28,276 factors on Tuesday, breaking above a key chart resistance and will have opened the door for additional upside potential. The index has reached its highest stage seen since January 2020, propelled by a rally in monetary and telco shares (chart under).

Grasp Seng High 10 Inventory Efficiency 12-01-2021

Supply: Bloomberg, DailyFX

On the macro entrance, a speech from ECB President Christine Lagarde shall be intently watched by forex merchants later at present. US core inflation and EIA crude oil stock knowledge are among the many high occasions too. Discover out extra from DailyFX calendar.

Sectoralsamples had been fairly blended in a single day: 6 out of 11 S&P 500 sectors ended increased, with 62.4% of the index’s constituents closing within the inexperienced. Power (+3.50%), supplies (+1.34%) and client discretionary (+1.31%) had been among the many finest performers, whereas communication companies (-1.50%) and healthcare (-1.07%) had been lagging.

S&P 500 Sector Efficiency 13-01-2021

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation:

Technically, the Nasdaq 100 index is edging increased inside an “Ascending Channel” as highlighted within the chart under. The index reached the decrease sure of the channel and has since rebounded. The uptrend can be well-supported by its 20-Day Easy Shifting Common (SMA) line, which is at 12,830 now. Speedy assist and resistance ranges may be discovered at 12,623 (76.4% Fibonacci extension) and 13,360 (127.2% Fibonacci extension) respectively.

Nasdaq 100 Index – Each day Chart

Grasp Seng Index Technical Evaluation:

The Grasp Seng Index (HSI) has doubtless breached the 200% Fibonacci extension stage of 28,050 and will have opened the door for additional upside potential. The worth has reached its highest stage since January 2020. Total momentum stays bullish biased, as prompt by the MACD indicator and widening Bollinger Band width. 28,050 has now turn into an instantaneous assist ought to there be a technical pullback.

Grasp Seng Index – Each day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index retraced to the decrease sure of the “Ascending Channel” in search of assist. Speedy assist and resistance ranges may be discovered at 6,630 (the 161.8% Fibonacci extension) and 6,810 (the 100% Fibonacci extension) respectively. Total momentum tilts barely in direction of the draw back as prompt by a bearish MACD indicator. A spread-bound situation is more likely to dominate buying and selling within the days to return.

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