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Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session


NASDAQ 100, NIKKEI 225, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 closed -0.45%, -0.14%, and +0.14% respectively
  • Traders mulled the impression of Fed price hikes and the unfold of Omicron variant on the economic system
  • Asia-Pacific markets look set to open modestly decrease, with Japan markets resuming buying and selling after a break

Nasdaq 100, Dangle Seng Index, Southbound, Asia-Pacific on the Open:

Wall Avenue shares rebounded throughout the late buying and selling session and erased some deep intraday losses on Monday. The tech-heavy Nasdaq 100 index fell as a lot as 2.7% earlier than bouncing again, ending modestly larger. This implies that market sentiment stays fragile as traders mull the impression of Federal Reserve price hikes, rising Treasury yields and the fast unfold of Omicron variant of the Covid-19 virus. But there appears to be dip consumers ready for a cut price too, because the current US jobs information confirmed good indicators of financial restoration. The US 10-year Treasury yield pulled again to 1.76% from 1.80%, assuaging stress on progress shares, valuable metals and Rising Market property.

Trying forward, the discharge of US company earnings stands out as the subsequent focus. Massive banks resembling JPMorgan, Wells Fargo and Citigroup will report outcomes this Friday, adopted by Goldman Sachs, Financial institution of America and Morgan Stanley subsequent week. The estimated earnings progress price for the S&P 500 is 21.7% in This fall 2021, marking a fourth straight quarter of earnings progress above 20%, in response to Factset.

US Earnings Highlights

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Supply: Bloomberg, DailyFX

Asia-Pacific markets look set to open decrease following a tepid lead from Wall Avenue. Futures in Japan, Australia, Hong Kong, South Korea, Taiwan, Singapore, Malaysia and India are within the purple, whereas these in mainland China and Thailand are within the inexperienced.

Hong Kong’s Dangle Seng Index (HSI) rallied 1.08% on Monday, defying fears a couple of quicker tempo of Fed tightening. Hong Kong shares have largely lagged behind world friends all through 2021, and their valuations have reached the bottom degree for the reason that outbreak of Covid-19. Many traders are eyeing Hong Kong shares for cut price looking, together with mainland traders. Alternate information confirmed that HKD 3.15 billion have flowed into the Hong Kong market on Monday by way of inventory connections, marking a fourth consecutive session of web influx (chart under).

Know-how shares outperformed, fueling a 2.21% rally within the Dangle Seng Tech Index (HSTECH). Comparatively small cap Kuaishou (+10.11%) and JD well being (+11.64%) outperformed massive cap identify Alibaba (-0.93%) and Tencent (+2.3%). If this rally may final, extra consumers could return to the market in search of alternatives to purchase the dip.

Southbound Movement vs. Dangle Seng Index

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Supply: Bloomberg, DailyFX

Trying forward, the Fed Chair Jerome Powell testimony dominates the financial docket alongside Australia retail gross sales and Japan coincident index. Discover out extra from the DailyFX financial calendar.

Trying again to Monday’s shut, 8 out of 11 S&P 500 sectors ended decrease, with 64% of the index’s constituents closing within the purple. Utilities (-1.15%), supplies (-0.99%) and shopper staples (-0.73%) had been among the many worst performers, whereas healthcare (+1.04%) and data expertise (+0.10%) outperformed.

S&P 500 Sector Efficiency 10-01-2022

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Supply: Bloomberg, DailyFX

Nasdaq 100 IndexTechnical Evaluation

The Nasdaq 100 index dangers breaching under a key help degree of 15,550 – the decrease certain of the range-bound zone it traded over the previous couple of months. Failing to carry above this degree would deliver the following help degree of 15,310 after which 14,800 into focus. The MACD indicator is trending decrease, suggesting that downward momentum could also be prevailing.

Nasdaq 100 IndexDay by day Chart

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Chart created with TradingView

Nikkei 225 Technical Evaluation:

The Nikkei 225 index is hovering inside a “Symmetrical Triangle” sample over the previous few month, ready for contemporary catalysts for a decisive breakout. The September excessive of 30,700 serves as a key resistance degree, whereas the decrease trendline could present some near-term help. The MACD indicator is about to type a bearish crossover beneath the impartial midpoint, suggesting that near-term momentum stays weak.

Nikkei 225 Index – Day by day Chart

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Chart created with TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index pulled again to a range-bound zone between 7,200 to 7,500 after a ‘false breakout’ final week. The ground and ceiling of the vary could also be considered as fast help and resistance ranges respectively. The general development stays bullish-biased, because the MACD indicator pierced by the impartial midpoint and moved larger. A significant breach above 7,500 could intensify shopping for stress and expose the following resistance degree of seven,760.

ASX 200 IndexDay by day Chart

Nikkei 225 and Hang Seng Index in Cautious Mood After a Choppy US Session

Chart created with TradingView

— Written by Margaret Yang, Strategist for DailyFX.com

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



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