Nasdaq 100, Cling Seng, Treasuries, US CPI, Technical Evaluation – Asia Pacific Indices Briefing
- Nasdaq 100, S&P 500, Dow Jones underperform within the wake of non-farm payrolls information
- Labor provide points underscored inflationary pressures, commodity costs rose on Monday
- Cling Seng Index weak as markets await Wednesday’s US CPI print, Treasury yields rise
Monday’s Wall Avenue Buying and selling Session Recap
Equities on Wall Avenue ended Monday broadly decrease, with near-even losses seen between the three main benchmark inventory indices. The Nasdaq 100, Dow Jones and S&P 500 (futures) closed -0.72%, -0.69% and -0.71% respectively. It was a reasonably quiet session with few financial occasion danger. The U.S. Columbus Day vacation left bond markets closed, although inventory markets had been buying and selling.
The deterioration in sentiment might have been a continuation of the market response to final week’s non-farm payrolls report. A miss within the headline jobs acquire was accompanied by indicators of labor provide points. Whereas fewer jobs had been added, and the labor power participation price declined, those who did discover new positions acquired increased earnings.
That’s seemingly persevering with to check and pressure the Federal Reserve’s place on the transitory inflation narrative. That is as commodity costs climbed on Monday. These included crude oil, aluminum and iron ore. Rising Treasury yield futures may very well be indicating that the markets anticipate an more and more less-dovish Fed because it prepares to provoke tapering, seemingly as early as November.
Nasdaq Technical Evaluation
The Nasdaq 100 is seeing combined technical indicators. Final week, a Bullish Harami candlestick sample was confirmed, hinting at near-term good points. On the identical time, there was a bearish crossover between the 20- and 50-day Easy Shifting Averages (SMA). Costs at the moment are buying and selling in-between these two indicators. Nonetheless, the long-term 200-day SMA sits across the 13829 – 14059 inflection zone. Within the occasion of additional losses, this might reinstate the dominant upside focus.
Nasdaq 100 – Day by day Chart
Chart Created in TradingView
Tuesday’s Asia Pacific Buying and selling Session
The bitter tone set on Wall Avenue dangers reverberating outwards as Tuesday’s Asia-Pacific buying and selling session will get underway. Australia will launch enterprise situations and confidence information. Current good points in coal and iron ore costs might hold the ASX 200 lifted. These commodities are key exports. In the meantime, the Kospi Index can be eyeing the Financial institution of Korea financial coverage announcement. The 7-day repurchase price is anticipated to be left unchanged at 0.75%.
A comparatively quiet financial docket might hold merchants targeted on the general market temper. This dangers sending regional indices, such because the Nikkei 225 and Cling Seng, decrease. All eyes are on the US CPI report, which is due on Wednesday. One other elevated studying might additional push Treasury yields increased. This may occasionally proceed denting sentiment as prospects of upper charges slowly reduces the enchantment of riskier property.
Cling Seng Technical Evaluation
The Cling Seng Index left behind a reasonably large higher shadow on Monday as costs touched the 50-day SMA. Nonetheless, that leaves the index above the 20-day line. Furthermore, current constructive RSI divergence confirmed that draw back momentum was fading because the index examined the 23679 – 24010 help zone. Resuming losses entails taking out that vary. Rising above the 50-day SMA may very well be a near-term bullish sign then again, putting the deal with the 26400 – 26824 resistance zone.
Cling Seng – Day by day Chart
Chart Created in TradingView
— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the feedback part under or @ddubrovskyFX on Twitter