Nasdaq 100 Pullback With Falling US Dollar β€” Will ASX 200, Hang Seng Follow?


  • Hang Seng index rose to a 12-month peak with Telco and financial giants leading the gain
  • The US equity index experienced a whipsaw session and closed moderately higher as small tech outperformed
  • Dropping US Dollar and yields underpinned the prices of commodities. Crude oil rise to $53.3


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The USD retreated from the 2 weeks high and the Treasury yield curve slightly flattened overnight, offering a relief rebound to the stock markets. All 3 major US stock indices also ended higher after the choppy trading session and the small-cap technology stocks continued to enjoy a more decent rally. Also, the Russell 2000 index rose 1.77% to a new record high.

The weakened US Dollar underpinned the prices of commodities and sent the WTI crude oil price to an 11-month peak. Silver and gold prices also pulled back along base metals like nickel, copper, and iron ore, the Asia pacific stocks seems poised to open mixed, with the material, mining, and energy sectors outperforming.

Also, the South Korean index (Kospi) might face challenges from jobless rate print that came in at the about 10-year peak of about 4.6% after the covid-19 outbreak. The current reading is way over the 4.1% forecasted by the economists, showing that the labor market is dwindling quickly than expected. Also, Malaysia has already declared a state of emergency after imposing a 14-day travel restriction it’s the capital and other states. This might slow down the performance of consumer discretionary, F&B, Travel, tourism, and aviation sectors since they are weaker to lockdown restrictions and the impact of the pandemic as Prices of Crude Oil Hit 11-Month Peak on Hopes of Reflation.

Performance of S&P 500 Sector

hang seng

Source: Bloomberg

Also, the ASX 200 index opened gradually lower and might trade in a tighter range-bound scenario today. Energy and material stocks rose higher, as the bank shares and technology shares lagged. The AUD pulled back to 0.7778 against the US Dollar, it looks set to resume the upside shift after a brief rebound.

Furthermore, the Hang Seng index rose 1.35% to close 28,276 points yesterday, breaking over the key chart resistance and might have opened doors for more uptrend potential. The Hang Seng index has already reached the highest level since early last year, driven by the action in Telco and financial stocks.

On the other hand, traders will watch the speech from Christine Lagarde, the ECB President closely later on Wednesday. Also, the EIA crude oil inventory and US Core inflation data were amongst the top-performing events.

The sectorial Patterns seemed very mixed over the past 24 hours with 6/11 S&P 500 index industrials ending higher, with about 62.4% of the S&P 500 index components performing very well. Consumer discretionary (+1.31%), materials (+1.34%) and energy (+3.50%) were the top performers while healthcare (-1.07%) and communication services (-1.50%) lagged.

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