S&P 500, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 closed -0.92%, -0.46% and +0.15% respectively
- Crude oil prices fell on the third day as traders studied the impact of the pandemic on energy needs
- Asia-Pacific markets appear to be open, investors wait for US non-farm payroll
Shares on Wall Street fell back on Wednesday crude oil price and weaker than expected ADP private salaries report muffled mood. The rapid outbreak of Covid-19 around the world is overshadowing the outlook for energy demand, lowering the price of crude oil by 7.6% in the last three days. enervous and industrial sectors were poor, while pandemic winners, for example Infotechnology and communication services, became the focus again.
ADP only reported 330,000 private works was added in July, a sharp disappointment at 680k in June (chart below). It also fell sharply below 695khighlighting the weak recovery in the labor market amid fears of a highly contagious Delta variant. Much weaker-than-expected numbers suggest a similar background on Friday non-farm wages data, which is one of the most important indicators monitored by Fed officials.
In the meantime, Vice Chairman of the Fed Richard Clarida said the central bank plans to raise interest rates in 2023 and reduce bond purchases. His obscure comment, accompanied by a broad “risk-free” mind, sent DXY US dollar index to the peak of the week 92.27.
US ADP employment change – last 12 months
Source: Bloomberg, DailyFX
Looking ahead, BoE the interest rate decision dominates alongside economic activity USA preliminary data on the unemployed. For more information, visit DailyFX economic calendar.
Asia-Pacific markets see that Thursday opens mixed. Futures in Japan, Australia, Taiwan, Singapore and Malaysia are in the red, while in mainland China, Hong Kong, South Korea, India and Thailand are green.
Hang Seng Index (HSI) rose 0.88% on Wednesday as investors tried to buy downs following recent regulatory restrictions that plagued major technology companies such as Tencent, Alibaba, Meituan and JD.COM. Although lower stock prices may encourage the search for bargains, regulatory risks remain in the minds of investors and may limit the extent of the setback.
Looking back at Wednesday’s end, 9 S&P 500 sectors finished below 11, with 76% of index voters closing in the red. The worst performers were energy (-2.93%), industrials (-1.37%) and consumer goods (-1.26%), while communication services (+ 0.23%) and information technology (+ 0.19%) were better.
Performance of the S&P 500 sector 08.08.2021
Source: Bloomberg, DailyFX
S&P 500 indexTechnical analysis
The S&P 500 index has risen in the rising channel formed since November, as shown in the chart below. The next key resistance level can be found at 4650 – 161.8% Fibonacci extension. The general trend is still bullish-biased, as suggested by SMA lines. However, the MACD has been lower recently, suggesting a downward trend.
S&P 500 index– Everyday Diagram
Technical analysis of the Hang Seng index:
The Hang Seng Index rose again to a base level of 24,850 after falling by almost 10% in three days. Prices fell below the floor of the downward triangle, indicating further consolidation. The general trend is still bearish, as SMA lines have formed a “death cross” and fallen lower. The MACD indicator formed a bullish crossover below the neutral midpoint, suggesting that selling pressure may ease.
Hang Seng 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 the successive higher and lower rises of recent months suggest. The MACD indicator rose ascending and rose higher, indicating an upward trend.
Index ASX 200 – daily schedule
– Wrote DailyFX.com strategist Margaret Yang
Use the Comments or section below to contact Margaret @margaretyjy Twitter