Nasdaq Hits Report Excessive as Biden Takes Workplace, Grasp Seng Eyes 30,000

NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:

• A “risk-on” rally prolonged on Wall Avenue, backed by sturdy earnings and Biden’s inauguration
• The Grasp Seng Index seems set to increase features past the 30,00Zero mark, led by the tech sector
• BoJ, ECB rate of interest choices and US weekly jobless claims are in focus right this moment

Nasdaq 100, US Earnings, Grasp Seng, ASX 200, Asia-Pacific at Open:

US equities registered sturdy features in a single day as President Joe Biden’s inauguration brightened the prospects for fiscal stimulus and measures to be put in place to counter the pandemic. Previous to this, Treasury Secretary nominee Janet Yellen confirmed her help for Biden’s US$ 1.9 trillion fiscal spending plan and opposed tax hikes, which can lend extra help to inventory markets’ rally.

Amongst S&P 500 firms, features have been led by communication companies (+3.6%), client discretionary (+2.3%) and data expertise (+2.0%) sectors. The Nasdaq 100 index superior 1.97% to an all-time excessive of 13,457, led by Alphabet (+5.36%), Amazon (+4.57%), Microsoft (+3.65%). Netflix soared 16% after reporting sturdy subscriber development and share buyback plans. US earnings continued to ship constructive surprises, with 12 out of 13 S&P 500 firms beating market forecasts final evening (desk on the finish). Wanting forward, Gilead Sciences, Intel Corp and IBM are among the many key firms to disclose outcomes right this moment. Learn extra on my earnings outlook report.

Nasdaq 100 Index Prime 10 Shares Efficiency 20-01-2021

Supply: Bloomberg, DailyFX

A powerful US buying and selling session might set an upbeat tone for the Asia-Pacific open, with futurespointing to a better begin throughout Japan, Hong Kong, mainland China, Australia, South Korea, Singapore and India. The Grasp Seng TECH Index surged 5.44% on Wednesday, dwarfing the broader HIS’s 1.08% achieve and outperforming main indices throughout the area. The tech-led rally was propelled by sturdy southbound inflows from mainland China buyers, with many mutual funds and establishments amongst them.

Australia’s ASX 200 Index opened 0.77% increased, led by info expertise (+2.55%), client staples (+1.40%), and financials (+1.15%) sectors. The index seems set to problem a key resistance stage of 6,810, buoyed by broad “risk-on” sentiment and hopes that Biden’s fiscal stimulus might increase demand for uncooked supplies.

On the macro entrance, each BoJ and ECB are anticipated to maintain their coverage charges unchanged right this moment. Worsening pandemic conditions in Japan might not warrant additional easing towards the backdrop of financial resilience and strengthen in Japan’s fairness market. Tonight’s weekly US jobless claims is anticipated to fall barely to 910okay from 970okay within the earlier week. The next quantity might level to additional weak point within the labor market and lift the necessity for aid help. Discover out extra from DailyFX calendar.

Weekly US Jobless Claims – Week ending 15th Jan 2021

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 Indexcontinued its upward trajectory throughout the “Ascending Channel” fashioned since early November. The seemingly “one-way” rally is well-supported by the 20-Day Easy Shifting Common (SMA) line and the upward trajectory stays in intact. The formation of bullish MACD crossover signifies sturdy upward momentum. Rapid help and resistance ranges might be discovered at 12,960 (100% Fibonacci extension) and 13,357 (127.2% Fibonacci extension) respectively.

Nasdaq 100– Every day Chart

Grasp Seng Index Technical Evaluation:

The Grasp Seng Index is driving a powerful pattern and is about to problem a psychological resistance stage at 30,000. Breaching it could open the door for additional upside potential with an eye fixed on 30,933 – the 161.8% Fibonacci extension. The MACD indicator is trending up alongside costs, reflecting sturdy bullish momentum.

Grasp Seng Index – Every day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index is range-bound between 6,575 to six,770 since late November, as highlighted within the chart under. Worth has probably breached the higher sure of 6,770 and is now making an attempt to interrupt the 200% Fibonacci extension stage of 6,810. A widening Bollinger Band width means that momentum is tilted extra to the upside.

ASX 200 Index – Every day Chart

S&P 500 Earnings Calendar 20-21st January 2021

Supply: Bloomberg

— Written by Margaret Yang, Strategist for DailyFX.com

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