Nasdaq Poised to Rise with Hold Seng, ASX 200. Apple Earnings in Focus

NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:

• Nasdaq 100 futures are advancing in afterhours commerce on earnings optimism, weaker US Greenback
• Fb and Apple climbed as traders anticipated robust This autumn earnings launch
• Asia-Pacific markets are poised for a rebound after struggling heavy promoting on Tuesday

Nasdaq 100, Apple, Fb earnings, Asia-Pacific at Open:

US fairness futures superior on Wednesday morning, led by the Nasdaq 100 index forward of massive tech earnings from Apple, Fb and Tesla. The US Greenback Index retreated from a one-week excessive whereas the 10-year US Treasury yield rose barely to 1.04%, assuaging strain over danger property. Enhancing sentiment and earnings optimism could encourage a rebound in Asia-Pacific equities at the moment.

Reflation trades appeared to have misplaced their momentum just lately resulting from covid-related lockdowns and uncertainties caused by mutant viral strains. Consequently, power and supplies sectors have lagged behind data expertise because the latter appeared to have extra earnings certainty throughout lockdown instances. On the optimistic entrance, US every day Covid-19 new instances have fallen to 133,913 on January 25th, marking the bottom studying since November 15th. The 7-day shifting common of every day instances has additionally been declining with the rollout of coronavirus vaccines (chart beneath).

Day by day Traits in US Covid-19 Circumstances

Supply: covid.cdc.gov

US company earnings continued to fare properly, with greater than 83% of S&P 500 corporations beating market estimations thus far this season. Final night time, 26 out of 31 corporations, together with Microsoft, 3M and America Specific delivered optimistic EPS surprises whereas Basic Electrical upset.

Trying forward, Fb and Apple’s This autumn outcomes at the moment can be carefully watched by traders and should set the tone for broader market sentiment. Consensus exhibits that the road is anticipating Apple’s This autumn 2020 EPS to return in at US$ 1.417, up by 13.6% YoY resulting from robust 5G iPhone and Mac gross sales within the fourth quarter. Fb’s This autumn EPS is predicted to succeed in a document excessive of US$ 3.54, marking a 38.2% YoY development. Each Apple and Fb share costs superior greater than 1 p.c in after-hour commerce, lifting the Nasdaq 100 futures larger. Extra earnings data may be discovered within the calendar on the finish of the article.

Sector-wise, Four out of 9 Dow Jones sectors superior on Tuesday, with 46.7% of the index’s constituents closing within the inexperienced. Defensive-linked shopper staples (+1.08%), data expertise (+0.82%) and industrials (+0.44%) have been among the many finest performers, whereas supplies (-2.60%), communication providers (-1.81) and power (-1.69%) trailed behind.

Dow Jones Sector Efficiency 26-01-2021

Supply: Bloomberg, DailyFX

Asia-Pacific markets look set to erase a few of Tuesday’s losses and commerce larger. The Hold Seng Index could try for a rebound after shedding 2.5% in the day prior to this. On Tuesday, southbound web capital flows by way of the inventory connections receded to HK$ 13.9 billion from HK$ 19.2 billion seen on Monday, reflecting cooling urge for food from mainland traders because the tech shares are getting increasingly more costly. 30,000 stays a key psychological resistance for the index.

Australia’s ASX 200 Index opened 0.52% decrease, dragged by power (-2.7%), supplies (-2.67%) and healthcare (-0.85%) sectors, whereas shopper staples (+1.16%), financials (+0.64%) and data expertise (+0.53%) are main. Steel & mining big Fortescue (-6.32%), Rio Tinto (-3.38%) and BHP Group (-2.4%) are among the many hardest hit.

ASX 200 High 10 Shares Efficiency at Open 26-01-2021

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation:

Technically, the Nasdaq 100 index seems set to proceed its upward trajectory throughout the “Ascending Channel” as highlighted within the chart beneath. The bull development stays intact and is well-supported by its 20-Day Easy Shifting Common (SMA) line. Widening Bollinger Band width factors to robust upward momentum, whereas the RSI indicator flags danger of overbought. Instant help and resistance ranges may be discovered at 13,360 (127.2% Fibonacci extension) and 13,860 (161.8% Fibonacci extension) respectively.

Nasdaq 100 Index – Day by day Chart

Hold Seng Index Technical Evaluation:

The Hold Seng index is dealing with a powerful resistance zone between 29,870 to 30,000 and has since entered a consolidative interval. Breaching the psychological stage of 30,000 could open the door for additional upside potential with a watch on 30,930 – the 161.8% Fibonacci extension. The MACD indicator is about to kind a “Demise Cross”, which suggests {that a} near-term pullback is extra seemingly.

Hold Seng Index – Day by day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index is range-bound between 6,575 to six,810 since late November, as highlighted within the chart beneath. The worth is trying to breach the higher sure of 6,810, and a profitable try could open the door for additional upside potential with a watch on 6,900. The general development stays bullish-biased, as advised by upward-sloped easy shifting common strains.

ASX 200 Index – Day by day Chart

S&P 500 Earnings Calendar – 26-27thJan 2021

Supply: Bloomberg

— Written by Margaret Yang, Strategist for DailyFX.com

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