S&P 500, HANG SENG, ASIA-PACIFIC MARKET OUTLOOK:

  • S&P 500 index futures buying and selling greater on Monday, setting a constructive tone for the week forward
  • Pfizer filed for an emergency-use authorization for its Covid-19 vaccine on November 20th
  • ‘Journey Bubble’ between Hong Kong and Singapore delayed, weighing on the Cling Seng Index (HSI)

Covid-19 Vaccine, HK-SG Journey Bubble, US Manufacturing PMI:

Asia-Pacific shares look set to open modestly greater on Monday, reversing bearish sentiment seen on the finish of final week. Dow Jones, S&P 500 and Nasdaq index futures have been edging greater in early Asia hours, erasing some losses incurred on Friday. Revenue taking actions appeared to have ramped up final week regardless of constructive vaccine information, as traders weighed a Treasury-Fed spat over stimulus funds alongside quickly spreading coronavirus infections world wide.

A journey bubble between Hong Kong and Singapore, which was initially deliberate to launch on Sunday, was delayed by two weeks after a spike in COVID-19 instances in Hong Kong. This will likely dent inventory market sentiment, significantly the tourism-sensitive aviation, retail and leisure segments. Japanese exchanges are shut for buying and selling at the moment. Buyers are dealing with a shortened buying and selling week as US markets shall be closed on Thursday for the Thanksgiving vacation.

Pfizer has filed an emergency-use authorization for its Covid-19 vaccine to US regulators final Friday, and Moderna is about to do the identical quickly. Constructive information from the world’s main pharmaceutical corporations could cushion the extent to which inventory markets could pull again, though vital questions stay on the sturdiness of the newly-developed vaccines in addition to hurdles within the mass manufacturing, storage, transportation and distribution phases.

Equities Forecast

Equities Forecast

Advisable by Margaret Yang, CFA

What’s the highway forward for equities this quarter?

Impressed by vaccine information, WTI crude oil costs closed at a 11-week excessive of US$ 42.46. The value appeared to have damaged above a right away resistance at US$ 42.00 and will have opened the door for additional upside potential in the direction of US$ 43.80 – a key resistance.

On the macro entrance, a string of Markit PMI figures from Germany, the EU, UK and US are among the many high occasions on Monday. Economists anticipate a broad cooling down in enterprise exercise sentiment throughout the foremost economies as a result of pandemic’s influence. The service sector may be the worst to undergo from lockdown measures, with service PMIs in Germany and the UK anticipated to register an enormous contraction in October. Discover out extra on the DailyFX financial calendar.

Markit Germany Service PMI –Forecasts

S&P 500, Hang Seng Weekly Open: Vaccine-Led Rally May Take a Pause

Supply: Bloomberg, DailyFX

Sector-wise, 10 out of 11 S&P 500 sectors closed within the crimson, with 69.4% of the index’s constituents ending decrease on Friday. Info know-how (-1.02%), industrials (-0.89%) and financials (-0.88%) have been among the many hardest hit, whereas utility (+0.03%), supplies (-0.11%) and healthcare (-0.14%) have been performing barely higher.

S&P 500 Sector Efficiency 20-11-2020

S&P 500, Hang Seng Weekly Open: Vaccine-Led Rally May Take a Pause

Supply: Bloomberg, DailyFX

Introduction to Forex News Trading

Introduction to Forex News Trading

Advisable by Margaret Yang, CFA

What does it take to commerce round knowledge?

Technically, the S&P 500 index has possible damaged a key resistance stage at 3,550 and thus opened the door for additional upside potential. Costs are consolidating at round 3,550, which has now grew to become a help stage. Close to-term momentum seems to have turned bearish because the MACD indicator has possible shaped a “Loss of life Cross”. A right away resistance stage might be discovered at 3,606 – the 23.6% Fibonacci extension.

S&P 500 IndexDay by day Chart

S&P 500, Hang Seng Weekly Open: Vaccine-Led Rally May Take a Pause

Cling Seng Index Outlook:

The Cling Seng Index (HSI) has possible shaped a mini “Ascending Triangle” sample over the previous two weeks, with a right away resistance stage discovered at 26,560. Costs appear to have over-stretched an early-November rally and thus are taking a pause lately. The general pattern stays bullish-biased, as recommended by the upward-sloped Easy Transferring Averages (SMAs). The MACD indicator has possible turned bearish nevertheless, suggesting a short-term correction is feasible.

Cling Seng Index Day by day Chart

S&P 500, Hang Seng Weekly Open: Vaccine-Led Rally May Take a Pause

ASX 200 Index Outlook:

The ASX 200 index defied gravity and moved greater, breaking a key resistance stage at 6,530 – the 76.4% Fibonacci retracement. The general pattern seems bullish-biased after breaking the 6,530 resistance, which has now change into a right away help stage. A right away resistance might be discovered at 6,640 – the 38.2% Fibonacci extension.

ASX 200 Index Day by day Chart

S&P 500, Hang Seng Weekly Open: Vaccine-Led Rally May Take a Pause

Building Confidence in Trading

Building Confidence in Trading

Advisable 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