DOW JONES, HANG SENG INDEX OUTLOOK:

  • Dow Jones futures could lead Asia-Pacific shares greater, the US Greenback fell
  • China 3Q GDP, industrial manufacturing, retail gross sales figures are in focus
  • Grasp Seng Index (HSI) appears to be like set to open mildly greater, going through a minor resistance at 24,400

Dow Jones Index Outlook:

A string of key Chinese language knowledge could set the tone for Asia-Pacific equities, in addition to risk-linked Australian and New Zealand {Dollars}. Economists foresee Chinese language financial development accelerated to five.2% YoY in Q3 from 3.2% in Q2. September’s industrial manufacturing and retail gross sales knowledge can even be carefully watched for clues into China’s supply- and demand-side restoration from the pandemic. Retail gross sales are forecasted to develop at 1.8% YoY, whereas industrial manufacturing rises 5.8% YoY. For each, that may be their quickest tempo in 9 months.

Dow Jones futures climbed 0.36% throughout early Asia buying and selling hours, in anticipation of higher Chinese language knowledge and speeches from Fed Chair Powell and ECB President Lagarde later at present. US company earnings continued to point out robust momentum, which can shelter inventory markets in opposition to election and stimulus dangers.

China GDP Progress YoY – Forecast

Dow Jones, Hang Seng Weekly Forecast: Eyeing Chinese Data, US Earnings

Supply: DailyFX

On the macro facet, this week’s key market occasions embrace:

  • October 19th(Monday):
  • RBA assembly minutes
  • Chinese language knowledge: Q3 GDP development fee, industrial manufacturing, retail gross sales
  • Fed chair Jerome Powell speech, ECB president Christine Lagarde speech
  • October 20th (Tuesday): Chinese language home worth index, US housing begins
  • October 21st (Wednesday):
  • UK inflation, ECB president Christine Lagarde speech, Canada inflation
  • EIA Cushing crude oil shares change
  • October 22th (Thursday):
  • Germany client confidence,
  • US preliminary jobless claims, present dwelling gross sales
  • October 23th (Friday):
  • New Zealand inflation, Japan inflation
  • Markit manufacturing PMIs from Germany, the UK, the EU and the US
Introduction to Forex News Trading

Introduction to Forex News Trading

Beneficial by Margaret Yang, CFA

What does it take to commerce round knowledge?

The US corporate earnings have fared nicely thus far. Greater than 80% of S&P 500 corporations, which have launched their earnings thus far, have crushed analysts’ forecasts. On Friday, 5 out of seven corporations launched better-than-expected earnings (desk beneath). Worldwide Enterprise Machine (IBM) will unfold outcomes on Monday, adopted by Procter & Gamble and Netflix on Tuesday.

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Sector-wise, solely Three out of 9 Dow Jones sectors closed within the inexperienced, with just one third of the index’s constituents ending greater. Industrials (+1.29%), healthcare (+0.21%) and client staples (+0.01%) had been among the many higher performers, whereas vitality (-0.84%) and financials (-0.23%) had been lagging.

Dow Jones Index Sector Efficiency 16-10-2020

Dow Jones, Hang Seng Weekly Forecast: Eyeing Chinese Data, US Earnings

Supply: Bloomberg, DailyFX

Introduction to Forex News Trading

Introduction to Forex News Trading

Beneficial by Margaret Yang, CFA

What does it take to commerce round knowledge?

Technically, the Dow appeared to have entered right into a consolidative interval after coming off a six-week excessive. It has examined a direct help degree at 28,390 – the 23.6% Fibonacci retracement (chart beneath) and has since rebounded. Breaking beneath this help could open room for extra draw back potential in direction of 28,040 – the 38.2% Fibonacci retracement.

The general development seems bullish-biased, as upward-sloped 20- and 50-Day Easy Shifting Common (SMA) strains counsel. The MACD indicator, nonetheless, is more likely to kind a ‘bearish cross’ over, suggesting that upward momentum may be fading.

Dow Jones IndexDay by day Chart

Dow Jones, Hang Seng Weekly Forecast: Eyeing Chinese Data, US Earnings

Grasp Seng Index Outlook:

Hong Kong shares could trip the tailwind of upper US futures and Chinese language knowledge on Monday. A falling US Greenback could level to a different ‘threat on’ session for buying and selling, particularly amongst monetary and know-how shares. CCB (+5.7%), ICBC (+4.25%), HSBC (+0.84%), Financial institution of China (+3.2%), Tencent (+0.91%), Xiaomi (+3.12%) and Alibaba (+3.23%) had been among the many greatest contributor to the index’s beneficial properties on Friday.

Technically, the HSI has additionally probably entered a short consolidation, with a direct help degree discovered at 24,065 – the 38.2% Fibonacci Retracement (chart beneath). The MACD indicator has additionally pointed to a weakening momentum not too long ago. Quick resistance ranges could be discovered at 24,400 (50-Day SMA) and 24,700 (100-Day SMA) respectively.

Grasp Seng Index Day by day Chart

Dow Jones, Hang Seng Weekly Forecast: Eyeing Chinese Data, US Earnings

Building Confidence in Trading

Building Confidence in Trading

Beneficial by Margaret Yang, CFA

Don’t give into despair, make a recreation plan

— Written by Margaret Yang, Strategist for DailyFX.com

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