S&P 500, NIKKEI 225 OUTLOOK:
- Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.04%, +0.19% and +0.27% respectively
- The VIX volatility index dropped to a pandemic low, underpinning market power
- Australian, mainland China and Hong Kong bourses are shut for holidays on Monday, so buying and selling throughout APAC could also be mild
Wall Road equities closed modestly increased on Friday as buyers shrugged off higher-than-expected US inflation information and shifted their focus to this week’s FOMC assembly. The S&P 500 index closed at all-time highs, whereas the Nasdaq 100 index ended a hair beneath its earlier peak. The VIX volatility index slide to 15.66 – the bottom degree seen since February 2020. This implies that market sentiment stays constructive however could also be susceptible to threat occasions.
The benchmark 10-year Treasury yield traded close to a three-month low of 1.46%, calming fears about tapering Fed stimulus any time quickly. Market members count on central financial institution officers to stay dedicated to free financial coverage even when they begin to talk about the tempo of month-to-month bond purchases this week.
Bitcoin surged greater than 9% over the previous 24 hours after Elon Musk stated that Tesla will resume accepting the digital token for transactions if “there’s affirmation of cheap (~50%) clear vitality utilization by miners with constructive future pattern”. Costs have returned to the 38.8k space, difficult a right away chart resistance degree of 39.3k.
VIX Volatility Index
APAC markets look set to kick off the week in a combined tone. Futures in Japan, Singapore and Thailand are buying and selling increased, whereas these in Taiwan, South Korea, Malaysia and India are within the purple. Australian, mainland China and Hong Kong bourses are shut for public holidays, so buying and selling quantity is likely to be skinny as we speak because of fewer market members. The financial calendar is comparatively quiet too.
For the week forward, US retail gross sales and the FOMC assembly dominate the financial docket alongside Australian unemployment figures. Discover out extra from theDailyFX calendar.
Trying again to Friday’s shut, eight out of 11 S&P 500 sectors ended increased, with 69.5% of the index’s constituents closing within the inexperienced. Financials (+0.61%) and data know-how (+0.56%) outperformed, whereas healthcare (-0.73%) and actual property (-0.59%) trailed behind.
S&P 500 Sector Efficiency 11-06-2021
Supply: Bloomberg, DailyFX
S&P 500 Index Technical Evaluation
The S&P 500 index is trending increased inside an “Ascending Channel” shaped since early November, the ceiling and the ground of which function key help and resistance ranges respectively. Costs are about to problem the 127.2% Fibonacci extension degree at 4,250. A profitable breach might open the door for additional upside potential. Bearish MACD divergence means that upward momentum could also be fading nevertheless.
S&P 500 Index – Each day Chart
Nikkei 225 Index Technical Evaluation:
The Nikkei 225 index is making an attempt to breach the ceiling of the “Descending Channel” shaped since early March. A profitable strive might result in a bullish pattern reversal and thus open the door for additional features with an eye fixed on 31,200. The ceiling coincides with the 100-day SMA line, and thus might function a robust resistance. The MACD indicator is flattening, suggesting that upward momentum could also be faltering.
Nikkei 225 Index – Each day Chart
— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part beneath or @margaretyjy on Twitter