Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Breaking news

Fed Raises Interest Rates by 25 Basis Points, in Line with Expectations, Adopts Less Hawkish Guidance

Dow Jones Eyes Support, Straits Times Faces Singapore General Election

Dow Jones Eyes Support, Straits Times Faces Singapore General Election

Daniel Dubrovsky, Contributing Senior Strategist
What's on this page

Dow Jones, S&P 500, Shanghai Composite, Straits Times – Asia Pacific Indices Briefing

  • Dow Jones and S&P 500 drop on Wall Street as Nasdaq gains
  • Rising US coronavirus cases & deaths likely spooked investors
  • Shanghai Composite may decrease, Straits Times eyes election

The majority of US equities ended in the red on Thursday in a sign of rising concerns about the outlook for growth. The Dow Jones and S&P 500 closed -1.39 percent and -0.56 percent respectively while the Nasdaq Composite recorded a +0.53 percent increase. The latter continues to speak to investors’ expectation that the tech sector can confidently ride out the storm that is surging coronavirus cases.

Equities Forecast
Equities Forecast
Recommended by Daniel Dubrovsky
What is the road ahead in Q3 for stocks?
Get My Guide

The world’s largest economy appears to be starting to see a spike in Covid-19 deaths. Fatalities in California increased by 149, the largest single-day jump recorded. Texas noted a record rise in deaths for three consecutive days as Florida numbers gained by 120. Demand for longer-dated Treasuries soared as the bid/cover ratio for the 30-year bond hit its highest since January at auction today.

As I have been talking about lately, the rise in local coronavirus cases have not been enough to materially dent the outlook for 2021 GDP. This also means the same for measures states and counties have taken thus far to pause lockdown-easing efforts. With that in mind, this could change if Covid-19 fatalities continue climbing and perhaps this is what the markets started to price in, slowly.

Discover your trading personality to help find optimal forms of analyzing financial markets

Dow Jones Technical Analysis

Dow Jones futures closed at the lowest in a week after the index rejected key resistance between 26193 and 26658. This leaves it once again facing the 50-day simple moving average (SMA) below. In late June, the Dow Jones bounced off the 50-day SMA and it may do so once again. Regardless, below the SMA sits key support which is a range between 24409 and 24743.

Wall Street Mixed
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -2% -5% -4%
Weekly -22% 39% 0%
What does it mean for price action?
Get My Guide

Dow Jones – Daily Chart

Dow Jones Daily Chart

Chart Created in TradingView

Friday’s Asia Pacific Trading Session

With that in mind, Asia Pacific equities could echo the broad ‘risk-off’ tone set on Wall Street. However, US second quarter earnings season is about to take off starting next week with a slew of financial companies and industrial businesses like Alcoa reporting. This is where stock valuations will be heavily scrutinized, particularly around the tech sector which arguably has a high bar to meet in the current environment.

This could leave financial markets in a consolidative setting, especially given that most key data for this week has past. The Shanghai Composite is awaiting Chinese aggregate financing data, which may cross the wires somewhere between today and July 15. Singapore’s benchmark Straits Time index has today’s general election to await. A 15th consecutive term for the People’s Action Party (PAP) may keep volatility at bay.

Straits Times Technical Analysis

The Straits Times rejected the 2671 – 2707 inflection range, perhaps setting it on course to test the 50-day SMA – blue line on the daily chart below. Below this technical barrier seems to be rising support from April – red lines. A daily close under 2572 could open the door to resuming the top from early June. Otherwise, a push above immediate resistance exposes the 2810 – 2839 barrier.

Interested in the Singapore Dollar, USD/SGD? Check out my latest ASEAN technical outlook !

Straits Times Index – Daily Chart

Straits Times Index Daily Chart

Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.