DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:Dow Jones, S&P 500 and Nasdaq 100 indexes closed +1.06%, +1.49% and +2.17% respectivelyUS retail g
DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indexes closed +1.06%, +1.49% and +2.17% respectively
- US retail gross sales progress unexpectedly stalled in April because the increase from stimulus checks light
- Asia-Pacific equities might comply with a constructive lead, however viral resurgence and lockdowns stay prime considerations
US Retail Gross sales, Client Sentiment, Pandemic, Asia-Pacific Week-Forward:
US markets shrugged off a slight miss in April’s retail gross sales figures and closed broadly larger on Friday. The expertise sector rebounded sharply as slower-than-expected spending progress cooled tapering fears. The Commerce Division reported a flat MoM studying in April following a 10.7% surge in March, suggesting that the increase from stimulus checks is fading. Wanting forward, document financial savings and post-Covid financial reopening should still underpin spending within the months to return.
The College of Michigan shopper sentiment determine got here in at 82.8, in comparison with a baseline forecast of 90.4. This additionally marked a pointy decline from the earlier month’s studying of 88.3, suggesting that rising inflation expectations are weighing on shopper confidence. This adopted a a lot poorer-than-expected nonfarm payrolls report final week alongside a fast improve in common hourly wage attributable to a scarcity in labor provide. Quickly rising wages and costs could also be beginning to constrain the restoration in financial exercise.
Alternatively, poorer financial readings alleviated traders’ considerations about tapering Fed stimulus. This strengthened a rebound in Wall Road shares final Friday, narrowing weekly losses for the Dow Jones, S&P 500 and Nasdaq 100 indexes to -1.14%, -1.39% and -2.34% respectively. This week, the discharge of FOMC assembly minutes leads the financial docket alongside Euro space inflation figures and the Australian jobs report. Discover out extra from theDailyFX calendar.
US Retail Gross sales (MoM)
Supply: Buying and selling Economics
Asia-Pacific markets look set to kick off the week on the entrance foot. Futures in Japan, mainland China, Hong Kong, Australia, South Korea, Taiwan and Singapore are pointing to a better begin on Monday. Bitcoin edged decrease after Elon Musk replied “Certainly” to a tweet that hinted Tesla might have offered or might quickly promote its Bitcoin holdings.
Singapore returned to quasi-lockdown on Sunday amid quickly rising group Covid-19 instances. The Straits Instances Index tumbled over 2% after the federal government tightened social-distancing measures on Friday. The near-term outlook stays cloudy as mutant viral strains seem like extra contagious and deadly than the earlier ones. Escalating pandemic conditions throughout India, Japan, Taiwan and Singapore trace at tighter border restrictions and extra lockdowns throughout the Asia-Pacific, threatening the financial restoration within the area.
Wanting again to Friday’s shut, Eight out of 9 Dow Jones sectors ended larger, with 83.3% of the index’s constituents closing within the inexperienced. Power (+2.62%), supplies (+2.57%) and financials (+2.20%) had been among the many finest performers, whereas communication providers (-2.01%) trailed behind.
Dow Jones Sector Efficiency 14-05-2021
Supply: Bloomberg, DailyFX
Dow Jones Index Technical Evaluation
The Dow Jones index hit the 200% Fibonacci extension degree (34,920) and has since pulled again barely. Costs stay inside an “Ascending Channel” fashioned since early November, the ceiling and the ground of which function key assist and resistance ranges respectively. The MACD indicator fashioned a bearish crossover and trended decrease, suggesting that upward momentum is fading.
Dow Jones Index – Day by day Chart
Dangle Seng Index Technical Evaluation:
The Dangle Seng Index (HSI) breached under the range-bound zone between 28,290 and 29,344 final week (chart under). This may increasingly open the door for additional losses with an eye fixed on 27,505 (the earlier low) for assist. The 20- and 50-day SMA strains are about to cross under the 100-day line, forming a “Loss of life Cross”. The MACD indicator is trending under the impartial midpoint, suggesting that bearish momentum could also be prevailing.
Dangle Seng Index – Day by day Chart
ASX 200 Index Technical Evaluation:
The ASX 200 index pulled again from document highs after a failed try to breach the 261.8% Fibonacci extension degree at 7,126. Costs have additionally breached under a “Rising Wedge”, hinting at additional draw back potential with an eye fixed on 6,920 (the 50-day SMA) for assist. The MACD indicator fashioned a bearish crossover and trended decrease, suggesting that upward momentum could also be fading.
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
ingredient contained in the
ingredient. That is most likely not what you meant to do!nn Load your utility’s JavaScript bundle contained in the ingredient as an alternative.www.dailyfx.com