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Hang Seng Eyes Resistance, Stocks May Wobble on Virus Woes, US-HK Bill

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HANG SENG INDEX, NIFTY 50 INDEX, GOLD PRICE OUTLOOK:

  • Hong Kong inventory market reopens after vacation; 25,000 stays a key resistance for Hang Seng Index
  • India Nifty 50’s upward trajectory stays intact, regardless of surging virus circumstances
  • Gold value rebounds as greenback index falls. Technical indicators counsel extra upside to return

Hang Seng Index Outlook:

Asia Pacific traders wakened on Friday morning with a string of macro and political headwinds. These embrace a weaker-than-expected US preliminary jobless claims knowledge, a surge in native coronavirus circumstances – which led Texas to halt reopening – and a sanction invoice over Hong Kong’s autonomy handed by the Senate which is maybe including to the bitter tone.

The US Senate has handed a invoice that may put sanctions on Chinese language officers who erode Hong Kong’s restricted autonomy from Beijing, in addition to the banks and corporations that do enterprise with them, based on Bloomberg information. This invoice will possible do no good to enhance the US-China relationship, which has deteriorated over the previous few months attributable to trade and virus disputes. Issues may worsen if Beijing decides to retaliate in opposition to the Hong Kong invoice.

The Hang Seng Index, the native inventory market benchmark, is more likely to open at round 24,700, based on futures markets. The index faces an imminent resistance degree at 25,000, which it failed to interrupt out earlier this week. Sentiment throughout the better China market may stay fragile regardless of a good rebound on Wall Road in a single day. The Hong Kong inventory market resumes trading after the Tuen Ng Competition Thursday. Mainland China shares are shut till Monday.

Final night time, US weekly jobless claims knowledge dissatisfied traders with a higher-than-expected studying. 1.48 million individuals filed for unemployment claims, increased than economists’ forecast of 1.Three million. It suggests a restoration within the US labor market is slower than anticipated, and it stays fragile amid virus resurgences.

The S&P 500 index rebounded 1.10% to three,083. Sector-wise, financials (+2.71%), power (+1.92%), data expertise (+1.3%), and supplies (+1.3%) have been among the many best-performing sectors.All sectors ended increased excluding utilities (-1.22%).

Hang Seng Eyes Resistance, Stocks May Wobble on Virus Woes, US-HK Bill

Knowledge Supply: Bloomberg

{Don’t give into despair, make a sport plan

Hang Seng Index –Technical Evaluation

The Hang Seng Index is difficult a key resistance degree at 25,000, which it failed to interrupt out above in early May, June and this week. The 20-day SMA (easy transferring common) has crossed above its 50- and 100-Day SMA, signaling a formation of a ‘golden cross’ ought to the value maintain above 24,000. An immediate help degree could possibly be discovered at 24,100 – the 38.2% Fibonacci extension degree.

Hang Seng Index – Day by day Chart

Hang Seng Eyes Resistance, Stocks May Wobble on Virus Woes, US-HK Bill

Nifty 50 Index Outlook:

India’s Nifty 50 Index inventory market benchmark is about to rise alongside a broader market. Its upward trajectory stays intact however basic headwinds amid rising native virus circumstances may name for a way of warning.

“The Nifty 50 could possibly be notably susceptible with native circumstances rising pretty aggressively, each over a each day and weekly foundation. Actually, India has grow to be one of many newer hotspots. This might undermine native financial restoration bets if measures must be taken to reinstate lockdowns”

“That is as scores businesses (Moody’s, Fitch, S&P) maintain the nation’s credit standing only a tick above junk standing. Consumption is slowly choosing again up, however that is after native carmakers bought zero autos to retailers again in April.”, – based on Daniel Dubrovsky, an analyst of DailyFX.

Technically, the Nifty 50 stays in an ‘Ascending Triangle’ on the each day chart, with speedy resistance degree discovered at 10,500 – the 61.8% Fibonacci retracement. Breaking out above this ceiling will open room for extra upside in the direction of 11,200 – the 76.4% Fibonacci retracement. The MACD has possible diverged from the value, which suggests momentum is skewed extra closely to the draw back.

Gold MIXED

Knowledge offered by

of shoppers are internet lengthy. of shoppers are internet brief.

Change in Longs Shorts OI
Day by day 11% -1% 7%
Weekly 7% 33% 14%

Hang Seng Eyes Resistance, Stocks May Wobble on Virus Woes, US-HK Bill

Gold Value Outlook:

Gold value has just lately damaged out above its ‘Ascending Triangle’ and cleared a key resistance degree of US$ 1,750. Its value rose to US$ 1,765 this morning, because of a falling US Greenback. Considerations over a world virus resurgence and uncertainties surrounding the US-China relationship following the Hong Kong sanction invoice might enhance the demand for security, and thus profit secure havens like gold and the Japanese Yen.

Hang Seng Eyes Resistance, Stocks May Wobble on Virus Woes, US-HK Bill

— Written by Margaret Yang, Strategist for DailyFX.com

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

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