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 knowledge
- Labor provide points underscored inflationary pressures, commodity costs rose on Monday
- Cling Seng Index susceptible 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 threat. The U.S. Columbus Day vacation left bond markets closed, although inventory markets have 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 achieve was accompanied by indicators of labor provide points. Whereas fewer jobs have been added, and the labor drive participation charge declined, those who did discover new positions obtained increased earnings.
That’s probably 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 could possibly be indicating that the markets anticipate an more and more less-dovish Fed because it prepares to provoke tapering, probably as early as November.
Nasdaq Technical Evaluation
The Nasdaq 100 is seeing blended technical indicators. Final week, a Bullish Harami candlestick sample was confirmed, hinting at near-term beneficial properties. On the similar 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 – Every 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 circumstances and confidence knowledge. Latest beneficial properties in coal and iron ore costs might preserve 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 charge is predicted to be left unchanged at 0.75%.
A comparatively quiet financial docket could preserve merchants centered 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 belongings.
Cling Seng Technical Evaluation
The Cling Seng Index left behind a pretty big higher shadow on Monday as costs touched the 50-day SMA. Nonetheless, that leaves the index above the 20-day line. Furthermore, latest optimistic 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 could possibly be a near-term bullish sign however, inserting the deal with the 26400 – 26824 resistance zone.
Cling Seng – Every day Chart
Chart Created in TradingView
— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the feedback part beneath or @ddubrovskyFX on Twitter