DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.13%, -0.05% and -0.23% respectivelyUS ISM Manu
DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.13%, -0.05% and -0.23% respectively
- US ISM Manufacturing PMI rose to 61.2 in Might, in comparison with a baseline forecast of 60.9
- Asia-Pacific markets are positioned for a blended open. The HSI is testing a key chart resistance
Small-cap Rally, US Information, OPEC+, Hold Seng Index, Asia-Pacific Outlook:
The small-cap-centric Russell 2000 index rose 1.14% in a single day, outperforming large-cap indices. This instructed that traders had been most likely rotating out from blue chips and into small- to mid-cap shares amid inflation issues. Rising retail speculative exercise could sign an overheated market situation.
Inventory costs of AMC leisure and GameStop rallied 22.66% and 12.17% respectively, largely pushed by a renewed wave of speculative exercise by Reddit day merchants. The so referred to as “brief squeeze” technique in play right here goals to power name choice writers and brief sellers to cowl their losses by buying again the shares from the open market, sending costs even increased.
The Dow Jones index closed modestly increased on Tuesday, buoyed by a stronger-than-expected ISM manufacturing PMI knowledge that underscores financial power. The studying got here in at 61.2, exceeding a baseline forecast of 60.9 and likewise marking the twelfth consecutive month of enlargement. Demand, consumption and inputs registered robust progress in comparison with April, with provide scarcity and labor constrains pointing to additional rise in value ranges.
Sturdy financial readings buoyed reflation optimism, sending the 10-year Treasury yields increased to 1.615% – a one week excessive. Supplies and vitality sectors outperformed, whereas the expertise sector suffered a light pullback. WTI crude oil costs surged 1.5% to a contemporary two-and-half yr excessive of $ 67.90 because the OPEC+ painted a vivid outlook for vitality demand and stayed on the right track to regularly roll again manufacturing cuts. Increased oil costs could assist vitality, oil & fuel in addition to offshore marine sectors.
US ISM Manufacturing PMI – Three Years
Supply: ismworld.org
Asia-Pacific markets are positioned for a blended begin on Wednesday. Futures in Japan, Hong Kong, Taiwan, Singapore are within the crimson, whereas these in mainland China, Australia, South Korea, Malaysia, India and Thailand are within the inexperienced.
Hong Kong’s Hold Seng Index climbed over 1% yesterday, lifted the expertise sector. Information reveals southbound internet influx by way of the inventory connection surged to HKD 5,295 million on June 1st as threat urge for food of mainland traders revitalized. This might sign additional value power because the inventory connections account for almost 1 / 4 of all the buying and selling quantity on the HK inventory change.
Hold Seng Index vs. Every day Southbound Internet Movement – 12 Months
Supply: Bloomberg, DailyFX
Wanting again to Tuesday’s shut, 5 out of 9 Dow Jones sectors ended increased, with 43.3% of the index’s constituents closing within the inexperienced. Supplies (+2.91%), vitality (+2.76%) and financials (+1.99%) outperformed, whereas healthcare (-1.56%) and shopper discretionary (-0.75%) trailed behind.
Dow Jones Sector Efficiency 01-06-2021
Supply: Bloomberg, DailyFX
Dow Jones Index Technical Evaluation
The Dow Jones index is difficult the 200% Fibonacci extension stage (34,920) for a second time. A profitable try could open the door for additional upside potential, whereas a failed one could lead to a bearish “Double Prime” sample. Costs stay inside an “Ascending Channel” shaped since early November, the ceiling and the ground of which function key assist and resistance ranges respectively. Bearish MACD divergence means that bullish momentum could also be fading nevertheless.
Dow Jones Index – Every day Chart
Hold Seng Index Technical Evaluation:
The Hold Seng Index (HSI) shaped a “Double Backside” chart sample on the each day chart and could also be positioned for additional value positive factors. The index breached above the trend-determine 100-day SMA line with upward momentum. A direct resistance stage might be discovered at 29,344 – the 50% Fibonacci retracement in addition to the neckline of the “Double Backside”. Breaching above this stage could open the door for additional upside potential with a watch on 29,778 – the 38.2% Fibonacci retracement.
Hold Seng Index – Every day Chart
ASX 200 Index Technical Evaluation:
The ASX 200 index reached an all-time excessive on Friday after breaching above a key resistance stage of seven,126 – the 261.8% Fibonacci extension. Costs have since opened the door for additional upside potential with a watch on 7,200. The MACD indicator shaped a bullish crossover and trended increased, suggesting that upward momentum is constructing.
ASX 200 Index – Every day Chart
— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part under or @margaretyjy on Twitter
component contained in the
component. That is most likely not what you meant to do!nn Load your software’s JavaScript bundle contained in the component as an alternative.www.dailyfx.com