share this article!

The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all finished with losses of 0.31 percent, 0.35 percent, and 0.02 percent, respectively. As robust inflation figures fuel tapering fears, the IT sector outperformed the cyclical ones. The Hang Seng Index in Hong Kong may fall after jumping 1.63 percent on Tuesday. Dow Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Tencent, Asia-Pacific at the start: On Tuesday, the Dow Jones Industrial Average fell from record highs as the US core CPI report beat market expectations. June’s figure was 4.5 percent YoY, compared to a projection of 4.0 percent. This is also the highest core inflation number since 1992, highlighting rising pricing pressures that may encourage Fed officials to consider tightening policy sooner rather than later. As a result, both 2- and 10-year Treasury rates rose overnight, putting negative pressure on stocks as borrowing costs rise. Due to a lackluster 30-year bond sale, the yield curve steepened. Higher yields may put pressure on precious metals, as the cost of keeping them rises. Banks began the earnings season on a positive note. JP Morgan and Goldman Sachs both outperformed analysts’ expectations in their equity and investment banking departments, respectively. To read more from a report prepared by my colleague Daniela Sabin Hathorn, please click HERE. Table of US Earnings for the Second Quarter Bloomberg and DailyFX are the sources for this information. Today’s economic agenda includes the RBNZ interest rate decision and UK core inflation statistics, as well as the Bank of Canada’s monetary policy report. Find out more with the help of the DailyFX economic calendar. The Asian markets are expected to have a mixed start to the day. Japan, Hong Kong, Singapore, and India’s futures are all in the red, while mainland China, Australia, South Korea, Taiwan, Malaysia, and Thailand’s futures are all in the green. The Hang Seng Index (HSI) in Hong Kong rose 1.62 percent on Tuesday, extending a three-day rally, as investors shrugged off regulatory concerns and cheered the PBoC’s recent RRR decrease. Tencent’s acquisition of Sogou, one of China’s top-ranked search engines, has been approved by Chinese regulators. This is an important move for Tencent in expanding its search business and perhaps benefiting from increased ad income. The ruling was also seen as a sign of relief for the tech industry, which has been under increased scrutiny in the areas of cybersecurity and antitrust. Tencent’s stock price increased by 3.9 percent. Looking back to Tuesday’s close, seven of the nine Dow Jones sectors ended the day lower, with 60 percent of the index’s components ending the day worse. Industrial (-1.68 percent), financials (-1.03 percent), and materials (-0.82 percent) were among the worst-performing sectors, while information technology (+0.87 percent) did well. 13-07-2021 Dow Jones Sector Performance Bloomberg and DailyFX are the sources for this information. Technical Analysis of the Dow Jones Index The Dow Jones index is testing immediate resistance at 34,920, which corresponds to the 200 percent Fibonacci extension. A successful attempt would almost certainly increase short-term buying pressure and open the door to even more upside potential. A unsuccessful attempt, on the other hand, could result in a bearish “Triple Top” chart pattern. The MACD indicator has created a bullish crossover and has been trending higher, indicating that bullish momentum is gaining traction. Daily Chart of the Dow Jones Index Technical Analysis of the Hang Seng Index: Last week, the Hang Seng Index broke through the range-bound zone’s floor, as indicated in the figure below. This week, the index has recovered and may be seeking to return to the zone, although the previous trendline support has now turned into immediate resistance. The MACD indicator has dropped below the neutral line, indicating that the index could be under selling pressure in the near future. Daily Chart of the Hang Seng Index Technical Analysis of the ASX 200 Index: The ASX 200 index is stuck in a narrow range between 7,230 and 7,370, waiting for new triggers to push it higher. As evidenced by the consecutive higher highs and higher lows produced in recent months, the general trend remains bullish. Around 7,500 is a significant resistance level. The MACD signal is trending lower, implying that prices are likely to remain range-bound in the near future. Daily Chart of the ASX 200 Index—- Margaret Yang, a DailyFX.com strategist, wrote this article. Use the comments section below to contact Margaret, or follow her on Twitter at @margaretyjy./nRead More

share this article!