Nasdaq 100 Surges on US Jobs Information, Boosting Nikkei 225 and ASX 200

S&P 500, NIKKEI 225, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 closed +0.55%, +1.06%, and +1.94% respectively
• Tech shares soared as jobless information beat expectations, commodity costs fell
• The Nikkei 225 and ASX 200 indexes look set to open larger, setting a constructive tone for APAC

Shares Rebound, Jobless Claims, Commodity, Crypto, Asia-Pacific at Open:

US shares rebounded strongly on Thursday as markets shrugged off inflation issues amid favorable jobs information. The tech-centric Nasdaq 100 index soared 1.94%, reversing its downward trajectory from a technical perspective. US weekly jobless information got here in higher than anticipated, with 444ok unemployment claims filed for the week ending Could 14th, in comparison with a 450ok forecast (chart under). The declining development underscored energy within the labor market as financial development gathered tempo.

Higher jobs information, alongside weaker-than-expected demand for an public sale of 10-year inflation-protected bond, revitalized threat urge for food. The latter means that demand for inflation-hedge property has cooled considerably, strengthening the Federal Reserve’s view that surge in value ranges is perhaps transitory.

In the meantime, commodity costs retreated additional, assuaging issues about inflationary stress. Costs of copper, iron ore, nickel, crude oil and pure gasoline declined for a 3rd day from their current highs, dragging the efficiency of vitality and materials sectors. The DXY US Greenback index fell practically half a p.c in a single day, sending gold to a recent four-month excessive of $ 1,877.

Crude oil costs slide for a 3rd day because the market tried to cost in an US-Iran nuclear deal narrative, which can result in larger outputs from the Center Japanese nation. This will weigh on the vitality, offshore marine and oil & gasoline sectors throughout the Asia-Pacific markets.

Weekly US Jobless Claims

Supply: Bloomberg, DailyFX

Asia-Pacific equities are positioned to open larger following a constructive lead from Wall Avenue. Futures in Japan, mainland China, Australia, Hong Kong, Taiwan, Singapore and India are within the inexperienced. Traders are eyeing a string of Markit manufacturing PMI figures from the UK, Eurozone and the US for clues in regards to the energy of financial restoration. Canadian retail gross sales and US current dwelling gross sales may also be watched. Discover out extra from theDailyFX calendar.

Japan’s Nikkei 225 index might commerce larger as we speak after registering a small achieve on Thursday. Stronger-than-expected exports information and equipment orders might underpin investor confidence, though lingering impression of the pandemic stay a prime concern.

Australia’s ASX 200 index opened 0.25% larger on Friday, led by data expertise (+2.42%) and healthcare (+1.28%) sectors. Pullback in base steel and uncooked materials costs might have cooled enthusiasm within the commodity-linked index these days. A weaker-than-expected Australian employment report in April hinted that the RBA will seemingly preserve its accommodative coverage stance for an extended time frame.

Wanting again to Thursday’s shut, 10 out of 11 S&P 500 sectors ended larger, with 69.3% of the index’s constituents closing within the inexperienced. Info expertise (+1.87%) and communication providers (+1.67%) have been among the many greatest performers, whereas vitality (-0.12%) trailed behind.

S&P 500 Sector Efficiency 20-05-2021

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index has seemingly shaped a minor “Double Backside” sample that’s inherently bullish in nature. The sample means that the index has discovered a near-term assist at round 13,000 and could also be positioned for a rebound. A direct assist degree will be discovered at 13,430 (the 161.8% extension), whereas a key resistance will be seen at 14,000 (200% Fibonacci extension). The MACD indicator is about to type a bullish crossover, suggesting that downward momentum could also be fading.

Nasdaq 100 Index – Day by day Chart

Nikkei 225 Index Technical Evaluation:

The Nikkei 225 index is difficult a key resistance degree at 28,357 (the 100% Fibonacci extension). A profitable try might opened the door for returning to the range-bound zone it traded inside during the last three months. the 20- and 50-day SMA traces are about to breach under the 100-day line, doubtlessly forming a “Loss of life Cross”. It means that the medium-term development has seemingly turned bearish. The MACD indicator is trending decrease beneath the impartial midpoint, suggesting that additional consolidation is probably going.

Nikkei 225 Index – Day by day Chart

Chart by TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index breached under a “Rising Wedge” chart sample, which is inherently bearish in nature. This will level to additional draw back potential with a watch on 6,837 (the 50-day SMA) for assist. 7,126 (261.8% Fibonacci extension) stays a key resistance. The MACD indicator shaped a bearish crossover and trended decrease, suggesting that promoting stress is prevailing.

ASX 200 Index – Day by day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part under or @margaretyjy on Twitter