Nasdaq 100 Retreats Amid Viral Issues, Will Cling Seng Index Comply with?

NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.15%, -0.33% and -0.71% respectively
• Crude oil costs pulled again for a second day, reflecting weakening demand outlook
• Asia-Pacific markets are positioned to comply with a unfavourable lead, with most futures buying and selling within the crimson

Tech Pullback, Delta Variant, Oil Retreat, Asia-Pacific at Open:

The Nasdaq 100 index pulled again from report highs for a second day because the rising Delta variant of the Covid-19 virus casted a shadow over the outlook of worldwide restoration. The power (-1.47%) and expertise (-0.84%) sectors have been main the decline. Los Angeles reinstated masks mandates for all residents in indoor public areas because the county is scrambling to battle a rising variety of Covid-19 circumstances. Los Angeles has seen a steep improve in coronavirus circumstances just lately, with 1,077 new ones reported on July 14th, greater than doubled from every week in the past.

Crude oil costs fell for a second day because the viral resurgence across the globe raised uncertainties concerning the outlook for power demand. WTI could also be testing $71.00 for quick assist, breaking which can result in additional value weak point in the direction of a psychological degree at $70.00.

Prime 10 Inventory Efficiency within the NASDAQ 100 Index 15-07-2021

Supply: Bloomberg, DailyFX

New Zealand noticed its inflation fee surge to three.3% in Q2, topping economists’ forecasts of two.8%. This strengthened the RBNZ’s rate-hike bets and led the New Zealand Greenback increased. The inflation determine got here simply two days after the central financial institution determined to cut back its month-to-month asset purchases because the financial outlook and labor market situation enhance.

Rising inflationary pressures could immediate the RBNZ and different central banks to think about tightening sooner. This may increasingly flag a warning signal for inventory markets after a yr of magnificent rallies, which have been partially fueled by central banks’ unprecedented financial easing and ultra-low rate of interest environments.

Each day New Covid-19 Instances in Los Angeles

Supply: Google

Asia-Pacific markets look set to finish the week on the again foot. Futures in Japan, Hong Kong, Australia, Taiwan, Malaysia, Singapore and Thailand are within the crimson, whereas these in mainland China, South Korea, Malaysia and India are within the inexperienced.

Hong Kong’s Cling Seng Index (HSI) is positioned to retreat kind a one-week excessive following a bitter lead from Wall Road. The index climbed 0.75% on Thursday after China launched Q2 GDP figures, which eliminated development considerations and justified the PBoC’s sudden ease on Friday. ADRs of Tencent and Alibaba outperformed the US friends on rumors that they could open their eco-systems to one another amid intensified regulatory pressures.

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index pulled again from a key resistance degree at 14,950 after failing to breach it. The index seems to have entered a wholesome correction, which can pave the way in which for it to aim increased highs. An instantaneous assist degree could be discovered on the 20-day SMA line. The MACD indicator fashioned a bearish crossover, suggesting that bearish strain is constructing.

Nasdaq 100 Index – Each day Chart

Cling Seng Index Technical Evaluation:

The Cling Seng Index is trying to problem the assist trendline that it broke down every week in the past. A failed try could reinforce promoting strain and result in additional losses. A key assist degree could be discovered at 27,150 – the 50% Fibonacci retracement. The general development seems to be bearish-biased because the MACD indicator pierced under the impartial line and continued to development decrease.

Cling Seng Index – Each day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index entered a decent vary between 7,230-7,370 over the previous few weeks, ready for recent catalysts for a breakout. The general bullish development stays intact as advised by the upward-sloped SMA strains. The MACD indicator is about to kind a bullish crossover, suggesting that upward momentum could also be constructing.

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