S&P 500 Challenges 3,200 Resistance, Hold Seng Assessments 25,000 Assist

S&P 500 INDEX, HANG SENG INDEX, CHINA A50 INDEX OUTLOOK:

• The S&P 500 index wobbles at 3,200 resistance on virus issues
• Hold Seng index involves a key assist degree at 25,000 after mainland markets’ collapse
• China A50 index consolidates at 15,000 – a two week low

S&P 500 Index Outlook:

US indices closed barely decrease on Thursday as sentiment was skewed to the cautious facet. Utilities (+1.32%), supplies (+0.36%) and communication companies (+0.3%) had been main whereas data know-how (-1.22%), actual property (-1.19%) and vitality (-0.51%) had been lagging.

Buyers are evaluating the impression of rising virus circumstances within the US to the roles market and financial restoration, in opposition to the backdrop of rising US-China tensions. Extra states are becoming a member of the mandate masks standing following a report day by day loss of life toll in Florida.

Netflix’s earnings miss may put extra strain on the know-how sector, which has been not too long ago questioned for his or her excessive valuation and outperformance in opposition to the benchmark indices. This has left the Nasdaq index buying and selling at a 47 price-to-earning (P/E) ratio, which makes it one of the crucial costly main indices globally.

Supply: Bloomberg, DailyFX

S&P 500 Index –Technical Evaluation

The index has come to a powerful resistance at 3,200 because it tried a breakout. An instantaneous assist degree might be discovered at 3,118 – the 20-Day Easy Transferring Common (SMA). Nevertheless, the general development stays bullish throughout the context of an ‘Ascending Channel’ (chart under).

S&P 500 Index – Every day Chart

Hold Seng Index Outlook:

Hong Kong’s Hold Seng Index (HSI) inventory market benchmark fell 2% on Thursday earlier than climbing up a bit this morning. The index has fallen 6.6% from the latest excessive at 26,970 seen on July seventh. US sanctions over Hong Kong’s particular standing and Chinese language officers weighed on market sentiment. As well as, a plunge in mainland A-share markets, which fell over 4%, additionally dragged the Hong Kong market decrease.

Tencent (-5.52%), Geely Auto (-11.98%) and HKEX (-5,72) had been among the many largest contributors to Hold Seng’s fall yesterday. Within the close to time period, mainland firms are prone to stay the largest influencers on Hold Seng.

Technically, the Hold Seng Index is searching for assist at 25,000, which is the higher ceiling of the ‘Ascending Triangle’ that it broke out two weeks again. The earlier resistance has now turn out to be a assist. Breaking down under 25,000 will most likely result in extra draw back in direction of the 50-Day Easy Transferring Common at 24,550.

Hold Seng Index – Every day Chart

FTSE China A50 Index Outlook:

The FTSE China A50 Index(A50) inventory market benchmark suffered its largest single day drop since March 16th, falling 4.3% because the IPO of SMIC (inventory code 688981) drained liquidity in mainland inventory markets. Even a better-than-expected 2Q GDP determine did not raise sentiment.

Technically, the A50 index may maybe discover assist at 15,100 – its 20-Day Easy Transferring Common (SMA). The subsequent assist may very well be discovered at 14,500 – a 38.2% Fibonacci retracement.

FTSE China A50 Index – Every day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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