Home Forex Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes

Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes

by kyngsam


NIKKEI 225, ASX 200, STRAITS TIMES INDEX OUTLOOK:

  • Dow Jones and S&P 500 fell over 1% after NYC shut colleges, Nasdaq misplaced 0.8%
  • Pfizer’s Covid vaccine reached a essential security milestone, with a 95% efficient price in ultimate trials
  • Nikkei 225 and ASX 200 indexes retraced from current highs; Straits Occasions Index (STI) might fall

Pandemic, Pfizer Vaccine, Asia-Pacific at Open:

All three main US indices closed broadly decrease as rising coronavirus circumstances throughout the nation threatened additional lockdowns. New York Metropolis determined to shut colleges because the Covid an infection charges surpassed a essential threshold. The 7-day common for brand spanking new circumstances within the US hit 150,000, whereas the overall loss of life toll reached 250,000. The worrisome image overshadowed constructive information from Pfizer, which stated its vaccine has reached a security milestone with a 95% efficient price in a ultimate medical trial. The corporate is making ready to hunt emergency-use authorization from regulators, paving manner for an preliminary use as early as December.

Sector-wise, all eleven S&P 500 sectors ended decrease, with about 80% of the index’s constituents closing within the pink. Power (-2.88%) , utilities (-1.93%) and healthcare (-1.76%) have been among the many worst performers.

S&P 500 Common Sector Efficiency 18-11-2020

Supply: Bloomberg, DailyFX

Asia-Pacific markets look set to observe a bearish US lead, with fairness futures pointing to a decrease begin in Japan, Australia, South Korea, India and Singapore.

On a separate word, crude oil prices have been underpinned by a smaller-than-expected enhance in US inventories, in keeping with information launched by the US Power Data Administration (EIA) in a single day. US crude stockpiles rose by 0.768 million barrels within the week ending November 13th, in comparison with a 1.65 million forecast. WTI is buying and selling at round US$ 41.80, making an attempt to problem a key resistance degree at US$ 42.00.

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On the macro entrance, ECB President Lagarde will give a speech at 08:00 GMT in the present day, which shall be intently watched by forex merchants. US preliminary jobless claims and present house sale figures are additionally among the many high occasions later. Discover out extra on the DailyFX economic calendar.

Straits Occasions Index Outlook:

The Singaporean inventory market noticed a major institutional cash influx in early November, with S$299 million and S$564 million pumping into native shares throughout the first two weeks respectively (chart beneath). Fund managers’ high picks embrace banks, aviation, meals & drinks and actual property shares. This displays a pickup in threat urge for food from institutional traders, who may need began a brand new spherical of discount looking after months’ of web promoting. A string of constructive vaccine information additionally lifted investor confidence.

Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes

Supply: SGX

Technically, the STI gave the impression to be quickly overbought, and thus could also be susceptible to a technical pullback beneath a key resistance degree at 2,800. The general pattern stays bullish-biased, albeit a short-term correction is feasible. A direct assist degree might be discovered at 2,703 – the 23.6% Fibonacci retracement.

Straits Occasions Index Every day Chart

Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes

Nikkei 225 Index Technical Evaluation:

Technically, the Nikkei 225 index broke above the “Ascending Wedge” that it fashioned since early June, propelled by sturdy upward momentum. The index hit a multi-year excessive of 26,200 earlier than coming into into a short consolidation. The Bollinger Band width has widened considerably, suggesting sturdy upward momentum. A direct assist degree might be discovered at 25,470 – the 23.6% Fibonacci retracement.

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Nikkei 225 IndexEvery day Chart

Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes

ASX 200 Index Technical Evaluation:

Technically, the ASX 200 index seems to be set to recede after hitting an eight-month excessive of 6,550. The general pattern stays bullish-biased, albeit a technical correction is feasible. Holding above a key assist degree at 6,500 might pave manner for additional upside potential with a watch on 6,600. A direct assist degree might be discovered at 6,400.

ASX 200 Index – Every day Chart

Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes

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— Written by Margaret Yang, Strategist for DailyFX.com

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





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