S&P 500 Index Hits a Recent Report, Nikkei 225 and ASX 200 Open Flat

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

BoJ, Tesla Earnings, FOMC, Asia-Pacific at Open:

Shares on Wall Road gained modestly on Monday, with the S&P 500 index hitting a contemporary document of 4,187.6. Constructive earnings surprises underpinned market confidence, offsetting the affect of US sturdy items orders that got here in need of expectations. Merchants will hold a detailed eye on the BoJ’s rate of interest determination in addition to the two-day FOMC assembly for clues about financial coverage steering.

A mushy DXY US Greenback index means that buyers are anticipating a dovish-biased Fed regardless of a reasonably sturdy financial rebound lately. In Japan, new state-of-emergency measures imposed in Tokyo, Osaka and two different prefectures might chorus the central financial institution from contemplating tapering any time quickly.

Tesla launched upbeat web earnings and income for Q1, however its share value dropped 2.7% as provide chain issued brought about some delay within the supply of the Mannequin S sedan automobiles. Tesla reported web earnings of $438 million throughout the quarter, in addition to earnings of 93 cents per share on $10.39 billion in income. This in comparison with market expectations of 79 cents earnings per share and $10.29 billion in income. The corporate additionally pocketed a $101 million optimistic affect from the gross sales of digital foreign money – presumably Bitcoin – throughout the quarter.

Supply: CNBC

Asia-Pacific markets are positioned to open blended. Futures in Japan, Australia, South Korea, Singapore, Malaysia and India are barely greater. These in Hong Kong, mainland China and Indonesia are within the pink nonetheless. South Korea launched a stronger-than-expected financial progress within the first quarter, setting a optimistic tone for its inventory market at open. The GDP progress fee hit 1.8% YoY, in comparison with a 1.1% forecast.

Japan’s Nikkei 225 index continued to consolidate beneath the 30,000 mark as new lockdowns and a provide scarcity of auto chips weighed on sentiment. In the meantime, rising Covid-19 infections and sluggish vaccination progress domestically might cloud the prospect of an financial restoration.

Wanting forward, the BoJ rate of interest determination headlines the financial docket alongside US client confidence index. Discover out extra from theDailyFX calendar.

Wanting again to Monday’s shut, 7 out of 11 S&P 500 sectors ended greater, with 52.1% of the index’s constituents closing within the inexperienced. Power (+0.64%), client discretionary (+0.62%) and data expertise (+0.56%) have been among the many greatest performers, whereas client staples (-1.16%) and utilities (-0.55%) trailed behind.

S&P 500 Sector Efficiency 26-04-2021

Supply: Bloomberg, DailyFX

S&P 500 Index Technical Evaluation

The S&P 500 index prolonged greater after rebounding from the 161.8% Fibonacci extension stage (4,125). A direct resistance stage may be discovered at 4,268 – the 200% Fibonacci extension. The general pattern stays bullish-biased as prompt by the upward-sloped shifting averages. The MACD indicator fashioned a bearish crossover and trended decrease, 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 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 direct resistance stage at 7,071 (the 100% Fibonacci extension) however didn’t breach it. A pullback from right here might result in a check 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 could also be underway.

ASX 200 Index – Each day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

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