DOW JONES, HANG SENG INDEX, ASX 200 INDEX OUTLOO:
- Dow Jones, S&P 500 and Nasdaq 100 indices closed at -0.28%, -0.18% and + 0.02%, respectively
- Cyclical sectors retreated amid growing viral concerns and softer economic data. Real yields fell to an all-time low.
- Hong Kong’s Hang Seng index may fall after rising 1.06% on Monday
Dow, producing PMIs, real returns, Crude oil, Asia-Pacific Open:
Dow Jones The Industrial Average retreated slightly on Monday as investors thought about cases of rising Delta options around the world and the slower expansion of China’s manufacturing sector. NBS production SMEs fell to 50.4 in July from 50.9 in June, marking a slower growth rate in 17 months. In the meantime US ISM manufactures PMI relief from 59.6 to 60.6 without losing market expectations.
Weaker production data and a deteriorating pandemic situation again created growth problems, sending prices down 10-year treasury bonds 5 months high. Real yields (nominal yield -inflation expectations) 10-year government bonds fell to a record low of -1.22%, reflecting both slower growth and rising inflation. Against this background, risk assets may be under pressure in the near future.
Crude oil prices, which are sensitive to the outlook for energy demand, fell 2.84% on Monday and rose on Tuesday morning. In China, millions of people were highly contagious in their homes Delta variant was found during the largest coronavirus outbreak in more than 20 cities. Efforts to prevent the spread of the virus could signal slower economic activity and softer energy needs in the coming months.
US 10-year Treasury return
Source: Bloomberg, DailyFX
Looking to the future,. RBA interest rate decision dominates the economic document today along with the US plant order report. For more information, visit DailyFX economic calendar.
Asia-Pacific markets is mixed at the beginning of the day. Futures in Japan, Australia, Hong Kong, Taiwan, Singapore and India are negative, while in mainland China, South Korea and Thailand they are green.
Hong Kong’s Hang Seng Index (HSI) rose 1.02% on Monday as investors rejoiced at HSBC ‘s strong Q2 earnings. The Shanghai Composite rose 1.97% on Monday as the recent virus rebirth in mainland China could allow the PBOC to ease monetary policy. The daily net outflow from the south has declined significantly in recent days, reflecting the fact that more buyers are likely to have returned to the Hong Kong market to hunt at a favorable price. However, ongoing regulatory risks may be in the minds of investors.
Looking back at the end of Tuesday, 7 of the seven sectors of the Dow Jones ended lower, with 76.7% of index voters closing in the red. Materials (-1.51%), information technology (-0.65%) and industry (-0.52%) were the worst performers, while finance (+ 0.17%) and healthcare (+ 0.11%) showed short.
Dow Jones Performance of the sector 08.02.2021
Source: Bloomberg, DailyFX
Dow Jones Index Technical Analysis
The Dow Jones index challenges the immediate resistance level of 34,920 – 200% Fibonacci extension. A successful test is likely to increase short-term buying pressures and open the door to further upside potential. However, a failed attempt can result in a triple ranking patent, which is harsh in nature. The divergence of the bear’s MACD suggests that the rate of increase may weaken.
Dow Jones Index – Everyday Diagram
Technical analysis of the Hang Seng index:
Hang Seng’s index broke the pattern of a shrinking triangle, entering a deep retreat. The immediate support level is 24,850 – 78.6% Fibonacci retracement. The general trend is sharply skewed, as suggested by the downward-sloping SMA lines. The MACD is below the neutral midpoint, suggesting that bear momentum may dominate.
Hang Sengi index – daily schedule
ASX 200 Technical analysis of the index:
The ASX 200 index challenges the key resistance level to 7500 – 200% Fibonacci extension. The overall trend remains bullish, as suggested by the successive higher and lower rises in recent months. The MACD indicator showed an upward trend and rose higher, indicating that the rate of increase is gaining momentum.
Index ASX 200 – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
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