DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indices closed at -0.75%, -0.86% and -0.60% respectively
- US government bond yields continued to fall, suggesting that reflection optimism may subside
- Asia-Pacific markets are in a negative position, most futures are traded in red
Yield, Delta Option, Unemployed Claims, Asia Pacific Open:
Shares of Wall Street rebounded from their record highs Delta vmoney The Covid-19 virus overshadowed the prospects for global recovery. Everything Dow Jones sectors ended in the lower end, the decline was driven by the financial, materials and consumer discretionary sectors. 10-year Treasury return fell to 1,294%, the lowest level since February. This refers to the position of this market reflection and long-term inflation may weaken. The growing demand for safety may also be due to the rise in the price of Treasury bonds, which have lower yields.
Japan’s the government announced on Thursday that it was planning a new virus state of emergency the Olympic Games, which begins on July 23rd. This marks the government’s latest measures to limit the spread of a highly contagious strain.
In the meantime, weekly initial claims of the unemployed the data fell slightly short of expectations. Last week, about 373 thousand unemployment benefits were submitted, compared to an estimated 350,000. Last week’s figure was adjusted to 374 thousand from 364 thousand. The slower-than-expected recovery in the labor market may allay declining fears as Fed officials monitor both inflation and employment indicators when formulating monetary policy.
US 10-year Treasury return
Asia and the Pacific markets see that the week is over. Futures in Japan, mainland China, Australia, South Korea, Taiwan, Malaysia, India and Thailand are in the red, while those in Hong Kong and Singapore are slightly higher.
Hong Kong’s Hang Seng Index (HSI) fell 2.89% on Thursday, putting it on the verge of writing off all annual profits. Entertainment deteriorated after Chinese regulators announced new antitrust rules on Thursday after ordering removal of app stores Didi Chuxing earlier this week. The sharp tightening of regulatory restrictions on the country’s large technology companies is undermining investor confidence, leading to a sharp fall in shares such as Tencent (-3.7%), Alibaba (-4.1%), Meituan (-6.4%) and JD.COM (- 3.6%). The short-term outlook may remain declining, as sales pressures do not appear to have been exhausted.
Looking back at the end of Thursday, all 9 Dow Jones sectors ended lower – 86.7% of the index’s components closed in the red. Financial services (-2.19%), materials (-1.35%) and consumer discretion (-0.87%) were the worst.
Dow Jones Sector performance 08-07-2021
Source: Bloomberg, DailyFX
Dow Jones Index Technical Analysis
The Dow Jones index is likely to have formed a “Triple Top” chart pattern after prices did not exceed the main resistance level of 34,920 for another trial. – 161.8% towards the Fibonacci extension.
Dow Jones Index – Everyday Diagram
Technical analysis of the Hang Seng index:
The Hang Seng index broke the uptrend, as highlighted in the chart below, and opened the door to further losses. You will find the immediate support level out of 27,150 – 50% Fibonacci retracement. The general trend seems to have declined as the SEA lines begin to form a “Death Cross”. The MACD indicator crossed the neutral line, indicating that the near-term momentum is tilting to the negative.
Hang Sengi index – Everyday Diagram
ASX 200 Technical analysis of the index:
The ASX 200 index withdrew from an all-time high and made a technical correction. Prices are likely to have formed a “bull flag” pattern, suggesting continued upward potential after the consolidation period. You can find immediate support at 7200 – 127.2% Fibonacci extension. The general upward trend remains intact, as indicated by the upward slope of the SMA.
ASX 200 index – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
Use the Comments or section below to contact Margaret @margaretyjy Twitter