August 14, 2022
  • August 14, 2022

Dow Jones remains stable as tech stocks rally, Hang Seng could rebound

By on June 30, 2021 0

DOW JONES, Hang Seng, ASX 200 OUTLOOK INDEX:

  • The Dow Jones, S&P 500 and Nasdaq 100 indices closed at + 0.03%, + 0.03% and + 0.33% respectively
  • Moderna’s Covid-19 vaccine has been shown to be effective against the Delta variant virus strain, a lab report shows
  • The Asia-Pacific markets are positioned to trade slightly higher. Focus on the NBS manufacturing PMI in China

Delta Variant, Moderna ‘Vaccine, NBS PMI, OPEP +, Asia-Pacific at the Open:

The Dow Jones Industrial Average traded slightly higher amid concerns about the Delta variant relaxed. Pharmaceutical company Moderna released a lab report on Tuesday, which showed that its Covid-19 vaccine is effective in producing antibody against the newly discovered viral strain in India. Moderna’s share price jumped more than 5% on Tuesday, reaching an all-time high. Yet questions remain about the production capacity and distribution of Moderna’s vaccine around the world as new viral strains continue to spread and mutate.

the Delta variant has been attributed to the recent increase in Covid-19 cases in the UK and Australia, and may threaten a new round of blockages and worldwide travel restrictions. This can cast a shadow over a fragile and unbalanced recovery in the global economy, especially in countries with relatively slow progress in immunization. A worsening of the pandemic situation could benefit technology sector, which tends to outperform cyclics at the height of the pandemic. Therefore, the Nasdaq 100 index could continue to outperform the Dow Jones in the days to come.

The Nasdaq 100 beats the Dow Jones

the US dollar index rebounded to 92.07 overnight, putting downward pressure on emerging market commodities and currencies. Gold price returned to $ 1,761, breaking below trend support of a “bearish pennant” and opening the door to further downside potential. Crude oil prices rebounded to $ 73.5 before a OPEC + meeting scheduled for July 1st, in which the oil cartel could decide to increase production by 550,000 bpd in August to meet growing demand for fuel.

For the future, China Manufacturing PMI NBS reading now dominates the economic agenda alongside Core inflation rate in the euro zone. Chinese manufacturing activity is expected to remain in expansionary territory, but economists expect the PMI gauge to retreat slightly from May’s level (chart below). A higher than expected reading may add strength to the Chinese Yuan, while a lower reading may result in the opposite. Learn more about DailyFX Economic Calendar.

China NBS Manufacturing PMI Forecast

Dow Jones remains stable as tech stocks rally, Hang Seng could rebound

Source: Bloomberg, DailyFX

Asia-Pacific Markets are positioned to rebound from yesterday’s losses. Futures in Japan, Australia, Hong Kong, Taiwan, Singapore, Malaysia, India and Thailand are in the green, while those in mainland China and South Korea are in the red . the Hong Kong market will be closed on July 1stst for Hong Kong Special Administrative Region Establishment Day.

Thinking back to Tuesday’s close, 4 of the Dow Jones’ 9 sectors ended higher, with 40% of the index constituents closing in the green. Consumer discretionary (+ 0.98%) and information technology (+ 0.60%) outperformed, while communications services (-1.28%) and industrials (-0.89%) ) are lagging behind.

Dow jones Sector performance 06-29-2021

Dow Jones remains stable as tech stocks rally, Hang Seng could rebound

Source: Bloomberg, DailyFX

Technical analysis of the Dow Jones index

The Dow Jones index has returned to the “ascending channel” after briefly falling below it last week.

An immediate support level can be found at 33,320 – the 161.8% Fibonacci extension, while a key resistance can be found at 34,920 – the 200% Fibonacci extension. The bearish MACD divergence suggests that prices may be vulnerable to a technical correction as the bullish momentum fades.

Dow jones Index Daily Graphic

Dow Jones remains stable as tech stocks rally, Hang Seng could rebound

Technical analysis of the Hang Seng index:

The Hang Seng index attempts to cross the cleavage (29,300) of the “Double Bottom” pattern for a second try. A successful attempt can open the door to further upside potential with an eye on 31,180 – the previous high. The MACD indicator hovers around the neutral line, suggesting that the index may lack a clear direction in the near term.

Hang Seng Index Daily Graphic

Dow Jones remains stable as tech stocks rally, Hang Seng could rebound

Technical analysis of the ASX 200 index:

The ASX 200 index retreated from its all-time highs this week and entered a technical correction. Prices have likely formed a “Bull Flag” pattern, which suggests further upside potential after a period of consolidation. Immediate support levels can be found on the 20-day SMA line (7,290) and then on 7,200 – the 127.2% Fibonacci extension. The overall uptrend remains intact, as the upward sloping SMA lines suggest.

ASX 200 Index – Daily chart

Dow Jones remains stable as tech stocks rally, Hang Seng could rebound

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

element inside

element. This is probably not what you wanted to do! Load your application’s JavaScript bundle into the element instead.