HANG SENG, ASX 200, DOW JONES INDEX OUTLOOK:

  • US present properties gross sales registered 6.85 million in October, marking a fifteen-year excessive
  • Asia-Pacific equities might open larger as know-how shares led a rebound on Wall Avenue
  • Mnuchin’s request for the Fed to return unused stimulus fundsmight dent sentiment

US Information, Virus Counts, Asia-Pacific at Open:

Vitality and know-how sectors led a gentle rebound on Wall Avenue, with the Dow Jones, S&P 500 and Nasdaq indices closing 0.15%, 0.39% and 0.87% larger respectively. Climbing virus counts and extra lockdown measures stay the point of interest, which can have re-ignited a “keep at dwelling’ commerce setup that tends to favor of tech shares. A a lot stronger-than-expected US present dwelling sale determine boosted market confidence. The information got here in at 6.85 million, marking its highest studying seen since 2005. This displays a powerful rebound in housing turnover after lockdown measures had been eased in the course of the summer time.

Hang Seng, ASX 200 May Rebound with Dow Jones as Housing Data Beats

Supply: Bloomberg, DailyFX

US preliminary weekly jobless claimsregistered 742okay within the week ending November 13th, in comparison with 711okay within the week earlier than. The studying additionally got here above market expectations of a 707okay enhance, reflecting weaker job market sentiment as one other pandemic wave hits the financial system.

Hang Seng, ASX 200 May Rebound with Dow Jones as Housing Data Beats

Supply: Bloomberg, DailyFX

Equities Forecast

Equities Forecast

Beneficial by Margaret Yang, CFA

What’s the highway forward for equities this quarter?

Asia-Pacific markets are positioned to open mildly larger following a constructive US lead, with fairness futures in Japan, Hong Kong, Australia and Singapore edging larger.

US Treasury Secretary StevenMnuchin stated on Thursday that he gained’t prolong a number of emergency lending packages, which had been run by the Federal Reserve, past this 12 months. The Treasury Division additionally requested the Fed to return unused funds, which may hinder Biden’s new secretary from restarting the lending services. This might function a adverse catalyst for danger property as help for company bonds and loans to mid-sized companies are nonetheless seemingly wanted to climate the financial system by way of virus’ impacts.

Sector-wise, 6 out of 9 Dow Jones sectors ended within the inexperienced, with 60% of the index’s constituents closing larger. Vitality (+1.72%), info know-how (+1.00%) and shopper staples (+0.79%) had been among the many greatest performers, whereas healthcare (-1.34%) and communication providers (-1.12%) had been lagging behind.

Dow Jones Sector Efficiency 19-11-2020

Hang Seng, ASX 200 May Rebound with Dow Jones as Housing Data Beats

Supply: Bloomberg, DailyFX

On the macro entrance, UK retail gross sales and Eurozone shopper confidence index are among the many high occasions right this moment. Discover out extra on the DailyFX financial calendar.

Forex for Beginners

Forex for Beginners

Beneficial by Margaret Yang, CFA

Why do rates of interest matter for currencies?

Dow Jones Index Technical Evaluation:

Technically, the Dow Jones Index got here off from a key resistance degree at 29,850 – the 76.4% Fibonacci extension – and entered right into a technical correction. An instantaneous help degree could be discovered at 29,220 – the 61.8% Fibonacci extension. Breaking this help might open the door for additional losses with a watch on 28,710. The MACD indicator is more likely to type a “Demise Cross”, which means that downward momentum is likely to be prevailing.

Dow Jones IndexEach day Chart

Hang Seng, ASX 200 May Rebound with Dow Jones as Housing Data Beats

Grasp Seng Index Technical Evaluation:

The Grasp Seng Index (HSI)seems have entered a interval of consolidation since November 9th, when the costs hit a 4-month excessive. The general pattern stays bullish-biased though some short-term pullback could also be seen earlier than costs try larger highs. An instantaneous resistance degree could be discovered at 26,840 – which is the 161.8% Fibonacci extension degree. An instantaneous help degree could be discovered at round 25,740 – the 100% Fibonacci extension.

Grasp Seng IndexEach day Chart

Hang Seng, ASX 200 May Rebound with Dow Jones as Housing Data Beats

ASX 200 Index Technical Evaluation:

Technically, the ASX 200 index has seemingly damaged above a right away resistance degree at 6,530 – the 76.4% Fibonacci retracement – and thus opened the room for additional upside potential. The general pattern stays bullish-biased, though some near-term consolidation can nonetheless be seen at round 6,530.

ASX 200 Index Each day Chart

Hang Seng, ASX 200 May Rebound with Dow Jones as Housing Data Beats

How to Use IG Client Sentiment in Your Trading

How to Use IG Client Sentiment in Your Trading

Beneficial by Margaret Yang, CFA

Enhance your buying and selling with IG Consumer Sentiment Information

— Written by Margaret Yang, Strategist for DailyFX.com

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