Dow Jones, Crude Oil, Energy Stocks, Corporate Income Tax, Nikkei 225, US CPI, Technical Analysis – Overview of Asia-Pacific Indices
- Dow Jones profits from energy stocks as OPEC’s monthly report increases crude oil price
- Nasdaq 100 falls when Democrats published an updated Biden tax plan, looking at corporate rates
- Nikkei 225 can follow the mostly rosy Wall Street example before US CPI data later
Monday’s Wall Street Trading Session Summary
Dow Jones outperformed S&P 500 and the Nasdaq 100 begin a new trading week with the indices closing at + 0.76%, + 0.23% and -0.03%, respectively. Rising energy supplies raised the relatively cyclically sensitive Dow Jones. In the S&P 500 sector, energy stocks were the best, growing by almost 3%. The worst was the health care sector, which fell 0.61%.
1.48% laughed at WTI crude oil price, which will close at its highest level since the beginning of August, is likely to have benefited from energy supplies. Earlier, OPEC published its monthly oil forecast. The cartel increased OPEC’s crude oil consumption prospects by 260,000 barrels per day by 2021. This results in a supply disruption outside the oil production cartel.
Meanwhile, technology shares were hit as Democrats unveiled an updated tax plan that would raise the highest corporate tax rate from the current 21% to 26.5%. The proposal also increases the tax rate on capital gains from 25% to 20%. As this would be a form of fiscal contraction, investors were likely to dump those assets that seemed to be relatively overestimated in terms of the impact on the company’s profits.
Dow Jones Technical Analysis
The rise of the Dow Jones on Monday reversed some of the recent losses seen in the fall Rising wedge chart pattern on the daily chart below. This probably strengthened key 34494, the lowest level in August. The upside down can open a door wedge to retest the former floor. Otherwise, closing less than 34,494 would reveal a 200-day moving average.
Dow Jones Futures – Daily Schedule
Tuesday’s Asia-Pacific Trade Session
Futures monitoring Wall Street stocks cautiously point to a higher trading session in the Asia-Pacific region on Tuesday. This can give the general market mood a rosy hue. After a speech by Philip Lowe, Governor of the Reserve Bank of Australia ASX 200, the economic document is quite quiet. Markets may also mark the time until the expected US consumer price index report is overwhelmed at Tuesday’s US session. A higher-than-expected outcome could result in reduced stakes for the Fed, leading to market volatility.
Nikkei 225 Technical Analysis
Nikkei 225 futures may be heading for a new record close, but prices may still be limited by a key obstacle between 30,345 and 30,725. This zone includes the upper will, which fell behind on 16 Februaryth. The upward rise in the 20- and 50-day Simple Moving Average (SMA) offers a short-term upward technical bias.
Nikkei 225 Futures – Daily Schedule
– Written by Daniel Dubrovsky, Strategist For DailyFX.com
Use the or comments section below to contact Daniel @ddubrovskyFX Twitter