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
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/rChAkNqPL2
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here: https://t.co/SIpslvhX0J https://t.co/jVxcE1QUBs
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here: https://t.co/MTc4tUDD6c https://t.co/DOQ6tyzep9
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/WQLZ1X7gIY
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level https://t.co/LkEyRxFhnq
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:https://t.co/vytr4OR1Jy https://t.co/ZcxEUWIm8O
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/x8uyOHLtgE
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/CaMR0Vqd1m
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:https://t.co/urDN2b5Nwd https://t.co/toSDbVZCSi
Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes

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

2020-11-19 01:30:00
Margaret Yang, CFA, Strategist
Share:

NIKKEI 225, ASX 200, STRAITS TIMES INDEX OUTLOOK:

  • Dow Jones and S&P 500 fell over 1% after NYC shut schools, Nasdaq lost 0.8%
  • Pfizer’s Covid vaccine reached a critical safety milestone, with a 95% effective rate in final trials
  • Nikkei 225 and ASX 200 indexes retraced from recent highs; Straits Times Index (STI) may fall
Advertisement

Pandemic, Pfizer Vaccine, Asia-Pacific at Open:

All three major US indices closed broadly lower as rising coronavirus cases across the country threatened further lockdowns. New York City decided to shut schools as the Covid infection rates surpassed a critical threshold. The 7-day average for new cases in the US hit 150,000, while the total death toll reached 250,000. The worrisome picture overshadowed positive news from Pfizer, which said its vaccine has reached a safety milestone with a 95% effective rate in a final clinical trial. The company is preparing to seek emergency-use authorization from regulators, paving way for an initial use as early as December.

Sector-wise, all eleven S&P 500 sectors ended lower, with about 80% of the index’s constituents closing in the red. Energy (-2.88%) , utilities (-1.93%) and healthcare (-1.76%) were among the worst performers.

S&P 500 Average Sector Performance 18-11-2020

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

Source: Bloomberg, DailyFX

Asia-Pacific markets look set to follow a bearish US lead, with equity futures pointing to a lower start in Japan, Australia, South Korea, India and Singapore.

On a separate note, crude oil prices were underpinned by a smaller-than-expected increase in US inventories, according to data released by the US Energy Information Administration (EIA) overnight. US crude stockpiles rose by 0.768 million barrels in the week ending November 13th, compared to a 1.65 million forecast. WTI is trading at around US$ 41.80, attempting to challenge a key resistance level at US$ 42.00.

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, ECB President Lagarde will give a speech at 08:00 GMT today, which will be closely watched by currency traders. US initial jobless claims and existing home sale figures are also among the top events later. Find out more on the DailyFX economic calendar.

Straits Times Index Outlook:

The Singaporean stock market saw a significant institutional money inflow in early November, with S$299 million and S$564 million pumping into local stocks during the first two weeks respectively (chart below). Fund managers’ top picks include banks, aviation, food & beverages and real estate stocks. This reflects a pickup in risk appetite from institutional investors, who might have started a new round of bargain hunting after months’ of net selling. A string of positive vaccine news also lifted investor confidence.

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

Source: SGX

Technically, the STI appeared to be temporarily overbought, and thus may be vulnerable to a technical pullback below a key resistance level at 2,800. The overall trend remains bullish-biased, albeit a short-term correction is possible. An immediate support level can be found at 2,703 – the 23.6% Fibonacci retracement.

Straits Times Index Daily Chart

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

Nikkei 225 Index Technical Analysis:

Technically, the Nikkei 225 index broke above the “Ascending Wedge” that it formed since early June, propelled by strong upward momentum. The index hit a multi-year high of 26,200 before entering into a brief consolidation. The Bollinger Band width has widened significantly, suggesting strong upward momentum. An immediate support level can be found at 25,470 – the 23.6% Fibonacci retracement.

Equities Forecast
Equities Forecast
Recommended by Margaret Yang, CFA
What is the road ahead for equities this quarter?
Get My Guide

Nikkei 225 IndexDaily Chart

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

ASX 200 Index Technical Analysis:

Technically, the ASX 200 index looks set to recede after hitting an eight-month high of 6,550. The overall trend remains bullish-biased, albeit a technical correction is possible. Holding above a key support level at 6,500 may pave way for further upside potential with an eye on 6,600. An immediate support level can be found at 6,400.

ASX 200 Index – Daily Chart

Nikkei 225 May Lead APAC Stocks Lower, Virus Cases Overshadow Vaccine Hopes
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Margaret Yang, CFA
Improve your trading with IG Client Sentiment Data
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