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
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
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
USD/JPY
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
More View more
Real Time News
  • House Financial Services Committee schedules second GameStop hearing for March 17 - BBG $GME
  • Speaker Pelosi says minimum wage increase will not be removed from House Covid bill - BBG
  • Asia-Pacific equities opened broadly lower amid a 'risk off' sentiment following a sour lead from Wall Street overnight. Rising yields and a stronger US Dollar exerted downward pressure over risk assets. https://www.dailyfx.com/forex/market_alert/2021/02/26/Dow-Jones-Falls-on-Rising-Yields-ASX-200-Nikkei-225-Tumble-.html https://t.co/3p7prANkLA
  • The Australian Dollar looks poised to outperform the haven-associated US Dollar and Japanese Yen. However, it may lose ground to the New Zealand Dollar. Key levels for AUD/USD, AUD/JPY and AUD/NZD.Get your $AUD market update from @DanielGMoss here:https://t.co/cuxRxl5WaF https://t.co/MD0ppnO7t6
  • RT @FxWestwater: $NZDUSD, $NZDJPY React as Soaring Treasury Yields Skew Market Risk Profile Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/02/26/NZDUSD-NZDJPY-React-as-Soaring-Treasury-Yields-Skew-Market-Risk-Profile.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $TNX https://t.c…
  • Biden authorized strikes on Iran-backed militant groups. Strike was in response to attacks on US, coalition forces -BBG citing DOD #CrudeOil
  • The commodity-sensitive Canadian Dollar may continue outperforming its major counterparts in the coming weeks. USD/CAD, CAD/CHF, CAD/JPY and EUR/CAD key levels to watch. Get your market update from @DanielGMoss here:https://t.co/KYdUv2lpFC https://t.co/ZZUJ4AZEhc
  • Market Snapshot: Risk aversion is deepening as Friday APAC trade gets going $NZDUSD and $AUDUSD sinking Following declines in #SP500 and #Nikkei225 futures #USD broadly higher, anti-risk Japanese #Yen as well US 10-Year Treasury rates remain higher https://t.co/gQ50vS73P0
  • RBNZ's Orr: To consider settings against types of home lending, financial stability policies can help government housing objectives -BBG
  • RBNZ's Orr: Only focused on inflation, employment targets -BBG
Dow Jones Up on Yellen Stimulus Push; Hang Seng and ASX 200 May Climb

Dow Jones Up on Yellen Stimulus Push; Hang Seng and ASX 200 May Climb

Margaret Yang, CFA, Strategist

DOW JONES, HANG SENG, ASX 200 INDEX OUTLOOK:

  • Treasury Secretary nominee Janet Yellen backed Biden’s stimulus plan, sending stocks higher.
  • US earnings continued to be upbeat; Netflix smashed new subscriber growth forecasts.
  • Asia-Pacific markets lookset to advance further after Tuesday’s rally.
Equities Forecast
Equities Forecast
Recommended by Margaret Yang, CFA
Get Your Free Equities Forecast
Get My Guide

Dow Jones, Yellen, US earnings, Asia-Pacific at Open:

US equity indices finished broadly higher on Tuesday after Treasury Secretary nominee Janet Yellen showed her support for Biden’s US$ 1.9 trillion fiscal stimulus plan and addressed a market-driven dollar exchange approach in her confirmatioilyauat25n hearing on Tuesday. She also highlighted the need for higher unemployment compensation while opposing tax hikes to help families to weather the pandemic. Yellen’s comments revitalized reflation hopes and lifted crude oil prices, which led the energy sector (+2.63%) to outperform.

US corporate earnings have fared well, with more than 85% of S&P 500 companies beating market estimations so far this season. Netflix’s share price surged over 12% in afterhours trade as the company said it is close to being free cash flow positive and is considering share buybacks to reward investors. Netflix registered strong global paid net subscriber growth of 8.5 million, compared to a baseline forecast of 6.47 million. While its Q4 EPS fell short of expectations, stronger user growth and a slight beat in revenue appear to have more than offset that miss.

Dow Jones Up on Yellen Stimulus Push; Hang Seng and ASX 200 May Climb

Source: CNBC

Sector-wise, 6 out of 9 Dow Jones sectors advanced on Tuesday, with 56.7% of the index’s constituents closing in the green. Energy (+2.63%), industrials (+1.32%) and information technology (+0.91%) were among the best performers, whereas consumer staples (-0.90%) and consumer discretionary (-0.75%) trailed behind. Looking ahead, earnings from Morgan Stanley, Procter & Gamble and United Airlines will be closely eyed today.

Please add a description for the image.

Asia-Pacific markets look set to follow a strong US lead and trade higher, extending Tuesday’s rally. Australia’s ASX 200 Index climbed 0.62% at the open, led by information technology (+2.95%), industrials (+1.62%) and energy (+1.08%) sectors.

Hong Kong’s Hang Seng Index (HSI) jumped 2.7% to a 20-month high yesterday, propelled by significant southbound inflow via the stock connections with mainland China. Investors there showed strong appetite for Hong Kong stocks recently, especially after the release of upbeat Chinese Q4 GDP and December’s industrial production figures. Meituan (+4.9%), AIA (+4.41%) and China Life Insurance (+1.70%) are among the best performing stocks in the HSI.

Hang Seng Index Top 10 Stocks Performance 19-01-2021

Dow Jones Up on Yellen Stimulus Push; Hang Seng and ASX 200 May Climb

Source: Bloomberg, DailyFX

Dow Jones Index Technical Analysis:

Technically, the Dow Jones index looks set to continue its upward trajectory within the “Ascending Channel” as highlighted in the chart below. The bull trend remains intact and is well-supported by its 20-Day Simple Moving Average (SMA) line. Immediate support and resistance levels can be found at 30,760 (20-Day SMA) and 31,410 (upper Bollinger Band) respectively.

Dow Jones Index – Daily Chart

Dow Jones Up on Yellen Stimulus Push; Hang Seng and ASX 200 May Climb

Hang Seng Index Technical Analysis:

The Hang Seng index is riding a strong uptrend and it has breached the 100% Fibonacci extension level at 29,038 decisively. The index pulled back after touching the 127.2% Fibonacci extension level at 29,870, which is an immediate resistance. Price continued to stretch above the upper Bollinger Band, reflecting strong bullish momentum. The RSI indicator suggests that price has been temporarily overbought and thus may be susceptible to a technical pullback.

Hang Seng IndexDaily Chart

Dow Jones Up on Yellen Stimulus Push; Hang Seng and ASX 200 May Climb

ASX 200 Index Technical Analysis:

The ASX 200 index is range-bound between 6,575 to 6,770 since late November, as highlighted in the chart below. Price is attempting to breach the upper bound of 6,770, and a successful attempt may open the door for further upside potential with an eye on 6,811 – the 200% Fibonacci extension level.

ASX 200 Index – Daily Chart

Dow Jones Up on Yellen Stimulus Push; Hang Seng and ASX 200 May Climb
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