Dow Jones, ASX 200, Hang Seng, US NFPs, China CPI – Overview of Asia-Pacific Indices
- Dow Jones edestas Nasdaq Composite after the USA NFP -d
- Markets in Asia-Pacific could see a rosy mood to start the new week
- ASX 200 can target new all-time records, will Hang Seng’s index fall?
Summary of Friday’s Wall Street Trading Session
Cyclically-oriented stocks outperformed the broader market at Friday’s Wall Street trading session. Dow Jones industry average raises pay, up 0.41% S&P 500 increased by 0.17%. This is so that the technically difficult Nasdaq Composite was somewhat successful, weakening by 0.40%. Traders were engaged in the recent digestion of non-agricultural payroll statements in the United States, which could have a central impact on the monetary policy of the Federation.
The state added 943,000 jobs in July, which is higher than the 870,000 estimates. This is how the unemployment rate shifted from 5.9% to 5.4%, from 5.4% to a lower consensus of 5.7%. It is encouraging that the labor force participation rate increased from 61.6% to 61.7%. This indicated that the labor market was able to absorb the increase in the number of employees. The average hourly wage also surprised the higher ones, reaching 4.0% and 3.9% in the year.
Longer-term government bond yields rose, indicating that investors also assessed global growth prospects. This, in turn, could prompt the US Federal Reserve to reduce earlier-than-expected quantitative easing, which some officials touted last week. Nevertheless, the outlook for global growth is uncertain in the midst of a more contagious Delta strain during the rise in Covid-19 cases.
Dow Jones Technical Analysis
Dow Jones futures closed a new high on Friday, taking out a key 34,760-35,000 resistance zone. However, the negative RSI gap has persisted since the end of April, indicating that the pace of growth is fading. This may be preceded by a turn towards a 50-100 day mobile moving average (SMA). They can restore the dominant upward focus as the index explores new vertices.
Dow Jones Futures – Daily Schedule
Monday’s Asia-Pacific Trade Session
Given the predominantly rosy mood on Wall Street, Asian and Pacific markets could start the week with a positive note. At the end of last week, the following futures on the ASX 200 pointed to a rise in US equities. Japanese markets are offline for mountain holidays. This means that a decline in technology stocks could damage the Hang Seng index. The significant risk of events is likely to stem from Chinese CPI data. Softer printing could increase demands on the People’s Republic of China (PBOC), which would help support the economy after spending most of that year draining the market of liquidity. This is especially true after the government’s attacks on the education and technology sectors.
ASX 200 technical analysis
The ASX 200 is likely to want to reach a new peak at the beginning of the week, but the negative RSI gap still seems to persist. This can open the door to turn lower if the reverse momentum disappears. Immediate resistance appears to be a Fibonacci 61.8% extension to 7588. Turning down, prices could fall to a 50-day SMA to get a chance to restore the dominant upward focus.
ASX 200 futures – daily schedule
Hang Seng’s technical analysis
Hang Seng index futures may be vulnerable as the price struggle rises above last year’s uptrend. The decline in 50- and 100-day SMAs offers a broader downward technical bias. Further losses may shift the focus back to 78.6% Fibonacci retracement to 24708. Otherwise, climbing above the previous trend line will indicate a retraction center of 27040.
Hang Seng Index Futures – Daily Chart
– Written by Daniel Dubrovsky, Strategist For DailyFX.com
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