Nasdaq 100, Hold Seng, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 closed +0.06%, +0.47%, and +1.05% respectively
- 10-year Treasury yield dropped to 1.43% whereas VIX fell to 16.11, boosting the know-how sector
- US headline CPI hit a 13-year excessive of 5.0% in Could, however traders remained calm and interpreted it as an indication of financial energy
US Inflation, Tech Rally, Yields, VIX, Jobless Claims, Asia-Pacific at Open:
Wall Road shares rallied on Thursday regardless of stronger-than-expected US inflation information. The headline CPI got here in at 5.0% YoY, in comparison with a forecast of 4.7%. The core price hit 3.8% YoY – the best stage seen since 1992 as rising demand, provide pressure and a low-base impact pushed worth ranges larger.
Market contributors maybe considered the readings as an indication of financial energy, and anticipate it to be ‘transitory’, in-line with what the Fed has been predicting. The 10-year Treasury yield fell over 4% to 1.43% to a three-month low, reflecting that inflation expectations are cooling. Longer-dated Treasury yields have fallen greater than 15 bps this week. (chart beneath)
Supply: Bloomberg, DailyFX
Sentiment was additional boosted by an honest jobless claims report, with 376k unemployment claims filed final week – the bottom because the pandemic. The tempo of job creating seems to have accelerated over the previous three months, in response to the latest API and nonfarm payrolls experiences. Trying forward, UK GDP information and the College of Michigan client sentiment index dominate the financial docket. Discover out extra from the DailyFX calendar.
The VIX volatility index fell 10% in a single day to 16.11 – a recent pandemic low. Whereas this factors to market confidence, it could additionally trace at a way of complacency. Due to this fact, subsequent week’s Federal Reserve Open Market Committee (FOMC) assembly is a key threat occasion to be watched for clues in regards to the central financial institution’s evaluation to inflation and financial development, in addition to when may be an applicable time to begin scaling again asset buying.
VIX Volatility Index
Trying again at Thursday’s shut, ASML Holdings, PayPal, Amazon and Tesla have been among the many finest performing main tech shares. Sector sensible, healthcare (+1.69%), actual property (+0.95%) and data know-how (+0.75%) led the positive factors, whereas financials (-1.12%) and supplies (-0.56%) trailed behind.
Nasdaq 100 High 10 Shares Every day Efficiency – 06-10-2021
Supply: Bloomberg, DailyFX
Asia-Pacific markets look set to open on the entrance foot, with futures in Australia, mainland China, Hong Kong, Taiwan, Singapore and Thailand buying and selling within the inexperienced. These in Japan, Malaysia and India are barely decrease nonetheless.
Hong Kong’s Hold Seng Index (HSI) is consolidating at round 28,700 this week after President Joe Biden’s banned funding in a widened listing of 59 Chinese language companies alleged to ties to protection or surveillance know-how sectors. The inventory connections registered web outflow from Hong Kong for 3 out of the final 4 buying and selling classes, reflecting a tepid demand from mainland traders. In the intervening time, the index might proceed to vary certain and await recent catalysts.
Australia’s ASX 200 index closed at all-time excessive of seven,302 on Thursday, propelled by restoration optimism and a dovish central financial institution. The index appears to be like set to hold this momentum ahead and purpose larger highs.
Nasdaq 100 Index Technical Evaluation
The Nasdaq 100 index is aiming to problem all-time highs at round 14,040, which can be close to to the 200% Fibonacci extension stage. The index accomplished a bullish “Double Backside” chart sample and prolonged larger, underscoring robust upward momentum. The MACD indicator crossed above the impartial midpoint and trended larger, suggesting that upward momentum is constructing.
Nasdaq 100 Index – Every day Chart
Hold Seng Index Technical Evaluation:
The Hold Seng Index (HSI) didn’t breach the “neckline” of the “Double Backside” chart sample shaped since early March and retreated to the 50-day SMA line in search of near-term assist. A right away resistance stage stays to be 29,350 – the 50% Fibonacci retracement. Breaching beneath a near-term assist of 28,730 might open the door for additional losses with an eye fixed on 28,300 – the 78.6% Fibonacci retracement.
Hold Seng Index – Every day Chart
ASX 200 Index Technical Evaluation:
The ASX 200 index is vary certain close to the 7,290 space, ready for recent catalyst to aim one other breakout. A right away resistance stage may be discovered at 7,340 – the 161.8% extension, whereas a direct assist may be discovered at round 7,194. The MACD indicator shaped a bullish crossover and trended larger, underscoring upward momentum.
ASX 200 Index – Every day Chart
— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part beneath or @margaretyjy on Twitter