Nasdaq Rebound Could Lead Dangle Seng, ASX 200 Larger amid Tech Rally

NASDAQ 100, HANG SENG, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 surged +0.58%, +1.04% and +2.36% respectively
• A lower-than-expected preliminary jobless claims determine confirmed energy within the US job market
• Stimulus-driven rally set a optimistic tone for Asia-Pacific markets at open. Bitcoin near all-time highs

Tech Rally, Jobless Claims, Yields, USD, Asia-Pacific at Open:

The S&P 500 and Dow Jones rallied to their report highs on Thursday as expertise shares continued to get well from the current rout. The Nasdaq 100 index jumped 2.36%, led by PayPal (+4.86%), tesla (+4.72%) and NVIDIA (+4.21%). A greater-than-expected jobless claims report and the passing of the US$ 1.9 trillion federal spending invoice boosted sentiment and inflation fears eased following clean Treasury word auctions today. The current pullback within the expertise sector might show to be one other wholesome correction amid a medium-term bull pattern, as an improved basic outlook and recent stimulus are more likely to underpin company earnings within the quarters to come back.

The US Greenback index (DXY) fell and the 10-year Treasury yield stabilized after a clean 30-year word public sale, easing issues a couple of steady rise in longer-term borrowing prices. A weaker greenback might encourage capital to return to rising market belongings, commodities and cryptocurrencies. Bitcoin costs surged to above 58okay with an try to problem the all-time highs.

Supply: Bloomberg, DailyFX

Asia-Pacific marketslook set to achieve following a powerful US lead. Futures throughout Japan, China, Australia, Hong Kong, South Korea, Taiwan and Singapore are pointing to open modestly greater.

Australia’s ASX 200 index opened up practically 1 p.c, led by info expertise (+2.56%), supplies (+1.47%) and power (+1.42%) sectors. 10 out of 11 ASX 200 sectors had been buying and selling within the inexperienced. Japan’s Nikkei 225 could also be beneath strain at the moment after Financial institution of Japan was reported to scrap its 6-trillion Yen ETF buy objective – a possible signal of tapering because the economic system is poised for a strong restoration. Hong Kong’s Dangle Seng Index might lengthen Thursday’s rally as southbound capital registered internet imflows for the primary time in 4 days, displaying a pickup in danger urge for food from mainland funds.

On the macro entrance, information continued to help a brighter restoration outlook and should provide inventory markets additional energy. The newest US weekly jobless claims determine got here in at 712okay, higher than the baseline forecast of 725okay. It additionally marked a steady decline from January’s peak, reflecting an bettering image of labor market sentiment with the rollout of vaccines paving the best way for a gradual financial reopening.

Wanting forward, German inflation information and UK GDP headline the financial docket alongside the College of Michigan shopper sentiment information. Discover out extra from theDailyFX calendar.

Supply: Bloomberg, DailyFX

Wanting again to Thursday’s shut, Eight out of 11 S&P 500 sectors ended greater, with 59.8% of the index’s constituents closing within the inexperienced. Data expertise (+2.12%), communication providers (+1.77%) and shopper discretionary (+1.56%) had been among the many greatest performers, whereas financials (-0.28%) and utilities (-0.26%) trialed behind.

S&P 500 Sector Efficiency 11-03-2021

Supply: Bloomberg, DailyFX

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Nasdaq 100 Index Technical Evaluation

The tech-heavy Nasdaq 100 appears to be like set to problem a key resistance degree of 13,150, the place the trend-defining 50-day Easy Transferring Common (SMA) line and the 20-day SMA intercept. Breaking it might intensify near-term shopping for strain and open the door for additional upside potential in direction of 13,300.

Nasdaq 100 Index – Every day Chart

Chart by TradingView

Dangle Seng Index Technical Evaluation:

The Dangle Seng Index hit a powerful resistance degree at 31,080 (76.4% Fibonacci retracement degree) in mid-February and has since entered a consolidative interval. The index tried to breach the ceiling of the “Descending Channel” as proven within the chart beneath, and a profitable try might sign a possible near-term pattern reversal. Additional affirmation requires the index to interrupt a key resistance degree of 29,500, the place the 20- and 50-day SMA strains overlap. A day by day shut above 29,500 might intensify shopping for strain and carve a path for worth to problem the 50% Fibonacci extension degree at 29,990. The MACD indicator is about to type a bullish crossover, suggesting that near-term momentum has turned upwards.

Dangle Seng Index – Every day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index stays within the “Ascending Channel” shaped since mid-November. A key help degree could be discovered at 6,700, the place the ground of the channel and the 50-Day Easy Transferring Common (SMA) line intercept. Breaking this degree might intensify near-term promoting strain and open the ground for additional losses with a watch on 6,600 for help. The MACD indicator is trending decrease beneath the impartial midpoint, suggesting that near-term momentum stays weak.

ASX 200 Index – Every day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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