Nasdaq 100, FTSE 100, ASX 200 Price Outlooks:
- The Nasdaq 100 weathered a crucial week of earnings reports with more to come
- The FTSE 100 and ASX 200 await their respective central bank rate decisions for clarity
- Difference between Dow, Nasdaq, and S&P 500: Major Facts & Opportunities
Nasdaq 100 Forecast
Outlook: Neutral
The Nasdaq 100 finished April on a high note, enjoying a gain of more than 19% despite significant economic uncertainty and mixed earnings from some of the largest and most important components on the index. Now with the Fed rate decision and key earnings behind it, the tech-heavy index will shift its focus to the remaining earnings to be released and the pace at which the US economy is reopened.
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Already, various states have announced plans to begin easing quarantine restrictions, but investors will likely have to grapple with a continued decline in economic readings before a meaningful recovery can get underway.
Nasdaq 100 Price Chart: 4 – Hour Time Frame (February – May)
In pursuit of clarity, US traders will look to Tuesday’s ISM non-manufacturing data and Friday’s jobless claims figures and non-farm payrolls report. If the last few weeks are any indication, unemployment will rise further – a possibility Fed Chairman Jerome Powell outlined explicitly at last week’s rate decision. Together, these metrics will help market participants gauge the depth of economic decline facing the US economy.
FTSE 100 Forecast
Outlook: Neutral
Following in the footsteps of the Fed and ECB last week, the Bank of England is scheduled to decide on its interest rate this coming Thursday. While no change in rates is expected, investors will be concerned with the BOE’s coronavirus response and economic projections. Since the Fed and ECB did little to boost market sentiment, the odds seem stacked against the BOE at this time.
FTSE 100 Price Chart: 4 – Hour Time Frame (January – May)
ASX 200 Forecast
Outlook: Neutral
Similarly, the Reserve Bank of Australia is set to decide on its interest rate next week and offer a statement on monetary policy. Again, no change to the interest rate is expected, but these unprecedented times have produced many surprise policy actions. Lacking other major events, the ASX 200 will likely follow broader risk trends until the RBA offers its commentary on the Australian economy. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.
ASX 200 Price Chart: 4 – Hour Time Frame (February – May)
ASX 200 Price chart
--Written by Peter Hanks, Analyst for DailyFX.com
