NASDAQ 100, NIKKEI 225, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.44%, +0.75% and +1.15% respectively
- Beijing’s newest crackdown on Didi Chuxing weighed on Hong Kong’s tech sentiment
- The RBA is predicted to carry coverage price unchanged and twist its QE program
RBA Assembly, Oil Rally, HK Tech Pullback, Asia-Pacific at Open:
US fairness futures are extending increased throughout early morning APAC commerce after the Independence Day vacation. The Nasdaq 100 index rallied 1.15% to an all-time excessive on Friday, lifted by large-cap shares corresponding to Alphabet (+2.30%), Amazon (+2.27%) and Microsoft (+2.23%).
The expertise sector regained energy amid a renewed wave of lockdowns brought on by the Delta variant of the Covid-19 virus across the globe. The upcoming earnings season might present the inventory market one other increase as analysts forecast a stable interval of development. This may increasingly pave the best way for Nasdaq 100 to try increased highs within the weeks to come back.
In Hong Kong, tech sentiment was weighed on by Beijing’s newest crackdown on Didi Chuxing – the nation’s largest ride-hailing service supplier. The corporate was listed within the New York change simply 5 days in the past earlier than the Our on-line world Administration of China (CAC) ordered app shops to take away it attributable to information and privateness legal guidelines violations. The Hold Seng Tech index plunged 2.28% on Monday, as buyers mulled an additional tighten up of regulatory controls over tech companies.
Each day Efficiency of Nasdaq 100 Prime 10 Shares – 02-07-2021
Supply: Bloomberg, DailyFX
Crude oil costs rallied 1.5% to contemporary two-and-half yr highs after an OPEC+ assembly ended with out a deal on Monday. Disputes between Saudi Arabia and the United Arab Emirates (UAE) seem to have escalated, stopping the oil cartel from agreeing on a 400k bpd manufacturing hike in August. Larger crude oil costs might feed inflationary pressures across the globe, strengthening the case for tapering central financial institution stimulus.
The RBA assembly will likely be beneath the highlightas we speak. The central financial institution is predicted to maintain rate of interest unchanged, whereas extending its bond-purchasing program. The rising of Delta variant is placing half of Australia’s inhabitants beneath stay-at-home restrictions. Towards this backdrop, the RBA could keep its accommodative financial coverage and be affected person in withdrawing the pandemic-era stimulus.
Asia-Pacific markets look set to commerce combined as we speak. Futures in Japan, Australia, South Korea, Taiwan, Singapore and Thailand are within the inexperienced, whereas these in mainland China, Hong Kong, Malaysia and India are within the purple.
Nasdaq 100 IndexTechnical Evaluation
The Nasdaq 100 index breached a key resistance degree at 14,013, thus opening the door for additional upside potential. Costs could goal for increased highs within the days to come back and the general pattern stays bullish-biased. The subsequent main resistance might be discovered at 14,950 – the 261.8% Fibonacci extension. The RSI oscillator penetrated into the 70 mark, suggesting that costs could also be briefly overbought and weak to a technical pullback.
Nasdaq 100 Index– Each day Chart
Nikkei 225 Index Technical Evaluation:
The Nikkei 225 index did not breach rapid resistance on the 100-day SMA line and entered into consolidation. A right away help degree might be discovered at 28,360 – the 100% Fibonacci extension. The subsequent key resistance degree might be discovered at 30,200- the 127.2% Fibonacci extension and the place the “Triple Prime” resistance lies. The MACD indicator is flattening at across the impartial line, suggesting that costs could also be lack of a transparent course.
Nikkei 225 Index – Each day Chart
ASX 200 Index Technical Evaluation:
The ASX 200 index pulled again from its all-time highs and entered a technical correction. Costs have probably fashioned a “Bull Flag” sample, which hints at additional upside potential after a interval of consolidation. Speedy help ranges might be discovered on the 20-day SMA line (7,310) after which 7,200 – the 127.2% Fibonacci extension. The general bullish pattern stays intact, though the MACD indicator is exhibiting near-term value weak spot.
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