Nasdaq 100 Retreats as Coinbase Falls, Might Solid a Shadow on Cling Seng and ASX 200

NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 closed +0.16%, -0.41% and -1.31% respectively
• Coinbase swung sharply decrease after debut, pulling Bitcoin and expertise shares broadly decrease
• Futures in Australia and Hong Kong are positioned for losses following a bitter lead

Coinbase, Powell Speech, Earnings, Asia-Pacific at Open:

The Nasdaq 100 index pulled again from its all-time excessive because the debut of Coinbase – one of many largest cryptocurrency exchanges – closed sharply decrease after debut. The worth of the inventory fell 23% from its intraday excessive of $428.9 and closed at $328.0, however nonetheless properly above the IPO reference worth of $250. Substantial promoting strain noticed on its IPO day pulled Bitcoin costs off its all-time highs and dented sentiment throughout the expertise sector. This may increasingly forged a shadow over Asia Pacific markets at open.

Vitality and monetary shares outperformed on Wall Road in a single day, buoyed by larger crude oil costs and upbeat financial institution earnings. Goldman Sachs and Wells Fargo surged 2.3% and 5.5% respectively as they reported earnings that beat expectations. JP Morgan fell 1.9% nevertheless, after its CEO Jamie Dimon painted a difficult image of mortgage demand.

Fed Chair Jerome Powell reiterated his dovish stance throughout a speech on the Financial Membership of Washington on Wednesday, emphasizing that the central financial institution will taper its asset buying program “properly earlier than” any rate of interest enhance. Federal Reserve Financial institution of Dallas President Robert Kaplan stated the current rise in Treasury yields was “pure, not alarming, and that’s an indication of an enhancing economic system”, and subsequently he would oppose a Fed intervention to include these charges.

The DXY US Greenback index fell 0.21% to 91.61, extending its downward trajectory fashioned since early April as market digested a slew of speeches from Fed officers. A weaker US Greenback could assist valuable metals and commodity costs, and buoy rising market currencies and equities.

Coinbase – 5 minutes Chart

Chart by TradingView

Asia-Pacific markets are poised for a combined begin on Thursday, with futures throughout Japan, Australia, Hong Kong, Taiwan, Singapore, India and Thailand pointing to open decrease. These in mainland China, South Korea, Singapore and Malaysia are barely within the inexperienced.

The Cling Seng Index (HSI) seems set to tug again barely after gaining 1.42% on Wednesday, as Coinbase’s lackluster debut could dampen sentiment for expertise shares. The index tried to show larger after Chinese language antitrust regulators imposed a report $2.eight billion wonderful on Alibaba.

Australia’s ASX 200 index opened down -0.34%, dragged by healthcare (-0.86%), utilities (-0.70%) and data expertise (-0.53%) sectors, whereas supplies (+0.94%) and vitality (+0.30%) outperformed.

On the macro facet, Australian employment knowledge headlines the financial docket alongside German inflation and US retail gross sales figures. The US weekly jobless claims knowledge may also be eyed for clues in regards to the well being of the labor market. Discover out extra from theDailyFX calendar.

Wanting again to Wednesday’s shut, 5 out of 11 S&P 500 sectors ended larger, with 51.1% of the index’s constituents closing within the inexperienced. Vitality (+2.91%), financials (+0.66%) and supplies (+0.64%) had been among the many greatest performers, whereas shopper discretionary (-1.17%) and data expertise (-1.15%) trailed behind.

S&P 500 Sector Efficiency 14-04-2021

Supply: Bloomberg, DailyFX

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Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index has doubtless fashioned an inverse “Head and Shoulders” sample, which can function a powerful bullish reversal indicator. The index surpassed its earlier excessive earlier than pulling again, suggesting that 13,900 stays a powerful near-term resistance. A strong break above this stage would doubtless intensify near-term shopping for strain and open the door for additional upside potential in direction of 14,000 – the 127.2% Fibonacci extension. The MACD indicator is flattening, suggesting that upward momentum is fading.

Nasdaq 100 Index – Every day Chart

Cling Seng Index Technical Evaluation:

The Cling Seng Index (HSI) has doubtless fashioned a “Head and Shoulders” chart sample, which serves as a bearish trend-reversing indicator. There might be extra draw back room if the sample completes. An instantaneous resistance stage could be discovered on the 50-day SMA line (29,119), whereas a right away assist stage could be discovered at 28,334 – the 23.6% Fibonacci retracement. The MACD indicator is trending larger beneath the impartial midpoint, suggesting that bullish momentum is constructing.

Cling Seng Index – Every day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index breached above the ceiling of the “Ascending Channel” and moved ahead to check a psychological resistance at 7,000. A every day shut above 7,000 would doubtless intensify near-term shopping for strain and pave the best way for additional upside potential in direction of 7,071 – the 100% Fibonacci extension. The MACD indicator is trending larger above the impartial midpoint, suggesting that purchasing strain is build up.

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