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Nasdaq 100 Shrugs Off Inflation Issues, Dangle Seng Breaches Key Resistance

nasdaq-100-shrugs-off-inflation-issues,-dangle-seng-breaches-key-resistance

S&P 500, Dangle Seng Index, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 closed +0.11%, +0.28%, and +0.38% respectively
  • US inflation hit a four-decade excessive of seven.0% in December, largely in keeping with expectations
  • Asia-Pacific markets look set to open greater. Hong Kong shares could proceed to guide the beneficial properties

Nasdaq 100, Dangle Seng Tech, US Inflation, China Inflation, Asia-Pacific on the Open:

Wall Avenue shares closed mildly greater on Wednesday, because the carefully watched US inflation knowledge didn’t ship a lot of a shock. Within the prior day, Federal Reserve Chair Jerome Powell assured market individuals that the central financial institution will tighten coverage to comprise inflation with out hurting the economic system. This clear steering eliminated coverage uncertainties and allowed buyers to focus extra on the upcoming earnings season.

The DXY US Greenback index plummeted 0.62% in a single day, falling to a two-month low of 95.00. This can be attributed to unwinding actions as buyers have beforehand priced-in no less than three fee hikes this yr. Because the roadmap of tightening will get clear, some merchants could search for an exit and revenue taking alternatives. A mushy US Greenback is mostly constructive to shares, commodities and Rising Market property.

High 10 Shares by Market Cap within the Nasdaq 100

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Supply: Bloomberg, DailyFX

Hong Kong shares could proceed to rise on Thursday, led by the know-how sector. Hong Kong’s Dangle Seng Index surged 2.8% and the know-how benchmark Dangle Seng Tech Index soared almost 4.99% on Wednesday, suggesting that buyers could also be shopping for the dips in anticipation of extra financial and stimulus help. The inventory connections registered HK$ 5.29 billion of internet Southbound inflows on Wednesday, marking the very best degree since October 2021. Wealth impact could encourage extra consumers to return to the market after months of promoting.

One other catalyst on Wednesday was the discharge of lower-than-expected inflation figures. December’s CPI and PPI got here in at 1.5% and 10.3% respectively, falling from November’s readings of two.3% and 12.9%. This can make it simpler for the PBOC to unfastened financial coverage in 2022 to spice up progress because the nation fought arduous to take care of its zero-Covid coverage.

The Japanese authorities has prolonged strict border controls till the tip of February amid a speedy enhance in Covid-19 circumstances because of the Omicron variant. This has weighed on market sentiment, particularly the tourism and journey sectors. The Nikkei 225 index stays in a consolidative temper ready for contemporary catalysts for a breakout.

China Inflation – Dec 2021

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Supply: Bloomberg, DailyFX

Wanting forward, a number of Federal Reserve official speeches dominate the financial docket alongside US preliminary weekly jobless claims. Discover out extra from theDailyFX financial calendar.

Asia-Pacific markets look set to open broadly greater on Thursday. Futures in mainland China, Australia, Hong Kong, South Korea, Taiwan, Singapore, Malaysia, India and Thailand are within the inexperienced, whereas these in Japan are within the pink.

Wanting again to Wednesday’s shut, 10 out of 11 S&P 500 sectors ended greater, with 57.6% of the index’s constituents closing within the inexperienced. Supplies (+0.95%), shopper discretionary (+0.63%) and knowledge know-how (+0.44%) had been among the many finest performers, whereas healthcare (-0.26%) and financials (+0.04%) trailed behind.

S&P 500 Sector Efficiency 12-01-2022

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Supply: Bloomberg, DailyFX

Nasdaq 100 Index Technical Evaluation

The Nasdaq 100 index rebounded from a key help degree of 15,550 – the decrease sure of the range-bound zone it traded over the previous few months. An instantaneous resistance degree could be discovered at 16,650 – the 200% Fibonacci extension. The transferring common strains are flattening, pointing to a scarcity of clear course. The MACD indicator is trending decrease, suggesting that downward momentum could also be prevailing.

Nasdaq 100Index – Every day Chart

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Chart created with TradingView

Dangle Seng Index Technical Evaluation:

The Dangle Seng Index (HSI) was buying and selling inside a “Falling Wedge” sample for the previous few months, as highlighted within the chart beneath. Costs are difficult the higher trendline of the wedge for a breakout. A profitable try could sign a bullish development reversal and open the door for additional beneficial properties.The MACD indicator is trending greater beneath the impartial midpoint, suggesting that bullish momentum could also be constructing.

Dangle Seng Index – Every day Chart

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Chart created with TradingView

ASX 200 Index Technical Evaluation:

The ASX 200 index pulled again to a range-bound zone between 7,200 to 7,500 after a ‘false breakout’ final week. The ground and ceiling of the vary could also be seen as rapid help and resistance ranges respectively. A significant breach above 7,500 could intensify shopping for strain and expose the following resistance degree of seven,760.

ASX 200 Index – Every day Chart

Nasdaq 100 Shrugs Off Inflation Concerns, Hang Seng Breaches Key Resistance

Chart created with TradingView

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part beneath or @margaretyjy on Twitter

DailyFX supplies foreign exchange information and technical evaluation on the traits that affect the worldwide foreign money markets.

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