S&P 500 Hits All-Time Highs as Core CPI Moderates, Dangle Seng to Open Greater

S&P 500, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 closed +0.62%, +0.25%, and –0.17% respectively
• US core inflation price got here in at 4.3%, falling from 4.5% a month in the past
• Asia-Pacific markets look set to open larger, with traders ready for UK GDP development price

S&P 500, Core CPI, Southbound Flows, Asia-Pacific on the Open:

Wall Road shares closed broadly larger on Wednesday because the core CPI price retreated to 4.3% YoY in July from 4.5% in June (chart under). That is largely in step with market expectations, supporting the Fed’s evaluation that reopening worth pressures are transitory. The DXY US Greenback index pulled again from a 3-week excessive, assuaging strain on commodity and valuable steel costs. Gold and crude oil costs rallied in a single day.

In the meantime, President Joe Biden is pushing for unified Democrat help for an additional $3.5 trillion in social spending, boosting reflation hopes. The cyclically-linked supplies, industrials and monetary sectors had been among the many greatest performers, whereas info know-how and healthcare lagged behind.

US Core CPI – Final 12 Months

Supply: Bloomberg, DailyFX

Trying forward, UK GDP figures dominate the financial docket alongside US preliminary jobless claims information. Discover out extra from theDailyFX financial calendar.

Asia-Pacific markets look set to open larger on Thursday. Futures in Japan, Australia, Hong Kong, Taiwan, Singapore, Malaysia and India are within the inexperienced, whereas these in mainland China, South Korea and Thailand are within the pink.

The Dangle Seng Index (HSI) climbed 0.2% on Wednesday, hitting a right away resistance stage at 26,650. The inventory connections registered a complete HK$20.75 billion of internet Southbound inflows during the last Four days. This implies that mainland patrons are returning for cut price searching after current regulatory clampdowns.

Dangle Seng Index vs. Southbound Day by day Web Stream

Supply: Bloomberg, DailyFX

Trying again to Wednesday’s shut, 10 out of 11 S&P 500 sectors ended larger, with 75.4% of the index’s constituents closing within the inexperienced. Supplies (+1.42%), industrials (+1.30%) and financials (+1.17%) had been among the many greatest performers, whereas healthcare (-0.97%) trailed behind.

S&P 500 Sector Efficiency 11-08-2021

Supply: Bloomberg, DailyFX

S&P 500 IndexTechnical Evaluation

The S&P 500 index is trending larger inside an “Ascending Channel” fashioned since November as highlighted on the chart under. The following key resistance stage may be discovered at 4,650 – the 161.8% Fibonacci extension. The general development stays bullish-biased as advised by the SMA traces. The MACD indicator fashioned a decrease excessive just lately nevertheless, hinting at downward momentum.

S&P 500 Index– Day by day Chart

Dangle Seng Index Technical Evaluation:

The Dangle Seng Index is difficult the ceiling of a spread sure at round 26,650. A profitable try could intensify near-term shopping for strain and carve a path for costs to hit larger highs. The following resistance stage may be discovered at round 27,150 – the 50% Fibonacci retracement. The near-term development has seemingly turned optimistic, because the MACD indicator fashioned a bullish crossover and trended larger.

Dangle Seng Index – Day by day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index has breached above a key resistance stage at 7,500 – the 200% Fibonacci extension. The general development stays bullish-biased, as advised by the consecutive larger highs and better lows fashioned over the previous few months. The MACD indicator fashioned a bullish crossover and trended larger, suggesting that upward momentum is dominating.

ASX 200 Index – Day by day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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