S&P 500 Index Falls as Tech Retreats, Nikkei 225 and ASX 200 Might Comply with

S&P 500, NIKKEI 225, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 closed -0.36%, -0.53%, and -0.96% respectively
• The expertise sector suffered a technical pullback regardless of robust earnings from IBM
• The Nikkei 225 and ASX 200 indexes opened amid a bitter temper

Tech Pullback, Earnings, US Greenback, Asia-Pacific at Open:

Shares on Wall Avenue pulled again from file highs as buyers took some revenue forward of the height of the earnings season. Practically half of S&P 500 corporations are going to launch their Q1 outcomes this and subsequent week, together with the vast majority of the FAANG names. Robust earnings progress has doubtless been baked into the lofty valuation of all three main indexes, rendering them susceptible to a technical correction ought to there be a slight miss.

IBM has crushed each earnings and income expectations, and its share worth is buying and selling 4% greater throughout after-market hours. The corporate posted its first income progress in 5 quarters, paving the best way for reaching income progress for the complete yr.

The DXY US Greenback Index fell 0.58% to 91.08 – a degree not seen in additional than six weeks. A seemingly widening commerce deficit seems to be driving the Dollar decrease as ports at California noticed surging import actions. The Fed’s newest dovish stance might have additionally contributed to the weak spot of the forex regardless of robust macro knowledge launched just lately. A weaker US Greenback might strengthen the outlook of the Rising Market currencies, treasured metals and different commodities.

DXY US Greenback Index

Chart by TradingView

Asia-Pacific markets are in a bitter temper, with futures throughout Japan, Australia and Hong Kong pointing to open decrease. Info expertise and shopper discretionary sectors might endure the most important pullback in these markets following buying and selling patterns within the US in a single day. Australia’s ASX 200 index appears to be like set to retreat from a 14-month excessive.

Japan’s Nikkei 225 index entered a consolidative temper in early April and has been buying and selling beneath the 30,000 mark since. The index was weighed by a provide scarcity of semiconductors for the auto sector, rising Covid-19 infections and gradual vaccination progress domestically in addition to a strengthening forex. The Japanese Yen gained 2.3% towards the US Greenback month-to-date, rendering the worth of Japanese exports much less aggressive in comparison with earlier than.

Wanting forward, UK unemployment adjustments headlines the financial docket alongside the rate of interest resolution from Financial institution Indonesia. Discover out extra from theDailyFX calendar.

Wanting again to Monday’s shut, 10 out of 11 S&P 500 sectors ended decrease, with 66.9% of the index’s constituents closing within the crimson. Shopper discretionary (-1.14%) and data expertise (-0.88%) had been among the many worst performers, whereas actual property (+0.29%) registered a small achieve.

S&P 500 Sector Efficiency 19-04-2021

Supply: Bloomberg, DailyFX

S&P 500 Index Technical Evaluation

The S&P 500 index retreated from its file excessive in a single day, presumably kicking off a technical pullback. Costs have breached above the 161.8% Fibonacci extension degree (4,125) beforehand, which now turns into a right away assist. The general pattern stays bullish-biased as urged by the upward-sloped shifting averages. The MACD indicator is about to kind a bearish crossover, suggesting that upward momentum could also be fading.

S&P 500 Index – Each day Chart

Nikkei 225 Index Technical Evaluation:

The Nikkei 225 index entered a consolidative part after it didn’t breach the 30,214 resistance (the 127.2% Fibonacci extension) for a 3rd try. Instant assist ranges may be discovered at 29,540 (50-day SMA) after which 28,357 (100% Fibonacci extension). The MACD indicator is trending decrease, suggesting that additional consolidation is probably going.

Nikkei 225 Index – Each day Chart

Chart by TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index hit a right away resistance degree at 7,071 (the 100% Fibonacci extension) and has since retreated. A deeper pullback from right here might result in a take a look at of the ceiling of the “Ascending Channel” that it broke beforehand. The MACD indicator is flattening, suggesting that purchasing stress is fading and a technical pullback is probably going.

ASX 200 Index – Each day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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