NASDAQ, HANG SENG, ASX 200 INDEX OUTLOOK:The Nasdaq Composite climbed to a brand new excessive following an upbeat Markit US manu
NASDAQ, HANG SENG, ASX 200 INDEX OUTLOOK:
- The Nasdaq Composite climbed to a brand new excessive following an upbeat Markit US manufacturing PMI report
- Hong Kong’s Grasp Seng Index is ready to open barely greater, difficult a resistance at 25,200
- The ASX 200 could open decrease right now, going through a resistance at 6,100
Nasdaq Index Outlook:
The discharge of an upbeat Markit US manufacturing knowledge despatched US indices greater on Friday, with Nasdaq and the S&P 500 index each hitting their file highs. The August Manufacturing PMI got here in at 53.6, smashing the market forecast of 51.9 and marking its highest studying seen in additional than 12 months. A studying above 50.Zero signifies an enlargement of the manufacturing sector and the space above this midline signifies the tempo of progress, so the numbers steered a stronger restoration within the US manufacturing facility sector than markets anticipated.
A good manufacturing studying could present cushion for the US job market, which has lately confirmed signal of weak point amidst a second viral wave. The US Greenback index rebounded to 93.16 from 92.66.
Supply: DailyFX
It’s price noting that the rally within the US inventory market is extraordinarily unbalanced – round 72% of the S&P 500 corporations closed decrease on Friday regardless of of a 0.34% climb within the S&P 500 index.
Sector-wise, know-how (+ 1.41%), shopper staples (0.24%) and industrials (+0.23%) had been doing the heavy lifting, whereas supplies (-0.38%), communication companies (-0.24%) and financials (-0.12%) had been lagging.
S&P 500 Index Sector efficiency 21-8-2020
Supply: Bloomberg, DailyFX
Technically, the index is using an ascending development (chart beneath), with its 20-, 50- and 100-Day Easy Shifting Common (SMA) strains trending upward. The RSI indicator has additional stretched past the overbought degree of 70, suggesting robust upward momentum. Quick assist ranges within the Nasdaq could possibly be discovered at round 11,225 -the 20-Day Easy Shifting Common (SMA).
Nasdaq Index – Each day Chart
Grasp Seng Index Outlook:
Hong Kong’s Grasp Seng Index (HSI)is ready to open greater following the tailwind of the US markets. Just like the US inventory market, know-how shares are main the Hong Kong inventory market rally. Nevertheless, as Alibaba, JD.com and Xiaomi should not included within the Grasp Seng index, the later was underperforming the US benchmarks.
Technically, the HSI is going through a right away resistance degree at 25,200 – the 38.2% Fibonacci retracement degree. Breaking this degree may probably open room for extra upside in direction of the subsequent resistance degree at 25,850 – the 23.6% Fibonacci retracement.
Grasp Seng Index – Each day Chart
ASX 200 Index Outlook:
Australia’s ASX 200 inventory benchmark is more likely to open barely decrease on Monday, in accordance with the longer term markets. That is regardless of of a stable US session. There are whole 216 new Covid-19 circumstances in Australia previously 24 hours, of which 208 circumstances had been discovered within the state of Victoria.
Technically, the ASX 200 index has retraced again to the ‘ascending triangle’ as proven within the chart beneath. It’s now going through a right away resistance degree at 6,100 – the higher certain of the triangle. ‘Vary-bound’ is likely to be the established order for now.
ASX 200 Index – Each day Chart
Advisable by Margaret Yang, CFA
Don’t give into despair, make a recreation plan
— Written by Margaret Yang, Strategist for DailyFX.com
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