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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Breaking news

New Zealand Dollar on the move as home prices may be considered in RBNZ's remit

Real Time News
  • RT @FxWestwater: $NZDUSD breaking back above 2019 high on #RBNZ consideration of home prices in remit. Price at the upper bound of a rising…
  • BoJ Governor Kuroda says no shift seen in Fed's policy stance - BBG
  • The New Zealand Dollar surged 0.6% against the greenback after its Finance Minister Grant Robertson raised concerns over rising house prices to the central bank, proposing the RBNZ to consider adding house prices as a factor when making monetary decisions https://t.co/C1poEj06Kr
  • I wonder if any other central banks would follow the lead of the RBNZ on pressure to factor in housing prices in monetary policy. Go way out on a limb and perhaps even consider capital market asset inflation...probably not https://t.co/Cke07Or35H
  • EUR/CHF IG Client Sentiment: Our data shows traders are now net-long EUR/CHF for the first time since Nov 16, 2020 08:00 GMT when EUR/CHF traded near 1.08. A contrarian view of crowd sentiment points to EUR/CHF weakness. https://www.dailyfx.com/sentiment https://t.co/WJ7ZCwf3Ak
  • NZD soaring on this as such an addition to the RBNZ's remit lowers the need to ease policy, given the current backdrop of rampant house prices https://t.co/2fx0VTUOZh
  • BoJ Governor Kuroda: Won't hesitate to add easing if needed BoJ measures are having a positive impact Nervousness in financial markets has eased somewhat - BBG $JPY #BoJ
  • 7 out of 11 S&P 500 sectors ended higher, with 73.1% of the index’s constituents closing in the green on Monday. Cyclical energy (+7.09%) , financials (+1.88%) and industrials (1.64%) were among the best performers, whereas real estate (-0.34%), healthcare (-0.30%) were lagging. https://t.co/bDpvRqEX4u
  • #ASX200 looking poised to extend its recent run higher as RSI climbs back into overbought territory Key resistance levels falling at the 50% (6674) and 61.8% (6755) Fibonacci's $XJO $ASX https://t.co/E7VADxCJ1o https://t.co/T3ICLoE9du
  • Euro Price Action Setups: EUR/USD, EUR/JPY, EUR/GBP Levels to Watch - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/11/24/Euro-Price-Action-Setups-EURUSD-EURJPY-EURGBP-Levels-to-Watch.html $EUR $EURUSD $EURJPY $EURGBP https://t.co/qxHSS90Rnd
S&P 500 May Lead Nikkei 225 Higher as Biden Wins Key Swing States

S&P 500 May Lead Nikkei 225 Higher as Biden Wins Key Swing States

2020-11-05 02:00:00
Margaret Yang, CFA, Strategist
Share:

US ELECTION, S&P 500, Nikkei 225 OUTLOOK:

  • US stocks were in ‘risk-on’ mode as election results leaned towards a Biden-win, divided Congress
  • The British Pound fell ahead of BoE meeting as traders anticipated further easing
  • Nikkei 225 index may trade higher, setting a positive tone for Asia-Pacific stocks
Advertisement

US election, S&P 500 Index and Asia-Pacific markets:

All three major US indices soared on Wednesday as the election odds swung to favor Joe Biden after he took Michigan – a key swing state. Biden has likely pocketed 264 out of the 270 electoral votes that are required to declare a victory. Traders are eyeing counts in Nevada, which has 6 electoral votes, for the final result. The Nasdaq, S&P 500 and Dow Jones rallied 3.85%, 2.20% and 1.34% respectively overnight.

Risk assets were in a rally mode, with equity futures across the Asia-Pacific positioned to open broadly higher. The haven-linked US Dollar fell alongside the VIX volatility index. Crude oil prices rose for a third day on a weaker US Dollar, falling stockpiles and hopes that Russia and OPEC+ may rein production. The British Pound was among the worst-performing G10 currencies today as markets anticipated further easing measures to be announced from the BoE meeting later today.

2020 US election results

S&P 500 May Lead Nikkei 225 Higher as Biden Wins Key Swing States

Source: The Associated Press, as at 7:11am November 5th Singapore time

The US has registered 92,660 new coronavirus cases on November 3rd, marking the third highest daily count behind October 30th. After the election, market focus will likely shift back to the fundamental elements and how the government plans to handle another pandemic wave. More monetary and fiscal support might be needed to weather through this crisis. Friday’s FOMC meeting and US non-farm payroll data are critical to watch.

Forex for Beginners
Forex for Beginners
Recommended by Margaret Yang, CFA
Why do interest rates matter for currencies?
Get My Guide

On the macro front, the BoE interest rate decision and US weekly jobless claims are among the top events besides the US election results. Find out more on our economic calendar.

Sector-wise, last night saw a fairly balanced sectoral pattern, with 46.7% of the index’s constituent ending higher. Healthcare (+4.45%), communication services (+4.25%) and information technology (+3.83%) were doing the heavy-lifting, whereas materials (-1.65%) and utilities (-1.60%) were lagging behind.

S&P 500 Index Sector Performance 04-11-2020

S&P 500 May Lead Nikkei 225 Higher as Biden Wins Key Swing States

Source: Bloomberg, DailyFX

Technically, the S&P 500 index rebounded with strong upward momentum this week. An immediate resistance level can be found at 3,470 – the 23.6% Fibonacci retracement (chart below). Failing to break this level may result in a pullback with an eye on the 20- and 50-Day Simple Moving Average (SMA) lines for immediate support. In the medium term, the S&P 500 index’ bull trend appears to remain intact. Holding above the 100-Day SMA may pave way for more upside potential.

S&P 500 IndexDaily Chart

S&P 500 May Lead Nikkei 225 Higher as Biden Wins Key Swing States

Nikkei 225 Index Outlook:

Technically, the Nikkei 225 index rebounded sharply this week, ending a period of consolidation. The index attempted to break the upper ceiling of the “Rising Wedge” (chart below) that formed since June. 24,000 may serve as a key resistance level, which Nikkei 225 failed three times to break above during December 2019 to February 2020. The overall trend remains bullish-biased.

Nikkei 225 Index Daily Chart

S&P 500 May Lead Nikkei 225 Higher as Biden Wins Key Swing States
Equities Forecast
Equities Forecast
Recommended by Margaret Yang, CFA
What is the road ahead for equities this quarter?
Get My Guide

--- Written by Margaret Yang, Strategist for DailyFX.com

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

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

DISCLOSURES