The Dow Jones, S&P 500, and Nasdaq 100 indices all ended the day with gains of 0.03 percent, 0.03 percent, and 0.33 percent, respectively. Moderna’s Covid-19 vaccine is effective against the Delta variant virus strain, according to a lab analysis. Markets in Asia-Pacific are expected to trade slightly higher. The manufacturing PMI from China’s National Bureau of Statistics (NBS) is in the spotlight. Moderna’ Vaccine, NBS PMI, OPEC+, Asia-Pacific at Open: Delta Variant, Moderna’ Vaccine, NBS PMI, OPEC+, Asia-Pacific at Open: As concerns over the Delta version faded, the Dow Jones Industrial Average traded slightly higher. On Tuesday, the pharmaceutical company Moderna released a lab report showing that its Covid-19 vaccine is efficient in creating antibodies against the newly discovered virus strain from India. On Tuesday, Moderna’s stock soared by more than 5%, reaching an all-time high. However, as new virus strains continue to proliferate and mutate, concerns about the vaccine’s production capacity and dissemination around the world remain. The Delta variation has been linked to an increase in Covid-19 cases in the United Kingdom and Australia, and it could lead to further lockdowns and travel restrictions around the world. This could cast a pall over the global economy’s fragile and imbalanced recovery, particularly in nations where vaccination progress is poor. A growing pandemic situation could help the technology sector, which has a tendency to outperform cyclical sectors during pandemics. As a result, the Nasdaq 100 index may outperform Dow Jones in the days ahead. The Nasdaq 100 outperforms the S&P 500. The Dow Jones Industrial Average is a stock market index Overnight, the US Dollar index rose to 92.07, putting negative pressure on commodities and developing market currencies. Gold prices fell to $1,761, breaking below the trending support of a “Bearish Pennant” and indicating the possibility of additional loss. Crude oil prices have recovered to $73.5 per barrel ahead of an OPEC+ meeting on July 1st, at which the oil cartel may opt to increase output by 550k barrels per day in August to satisfy rising fuel demand. Looking ahead, today’s economic agenda is dominated by China’s NBS Manufacturing PMI report, as well as the Eurozone’s core inflation rate. The expansionary trend in Chinese manufacturing is expected to continue, but economists expect the PMI index to fall slightly from May’s level (chart below). A stronger-than-expected reading may strengthen the Chinese Yuan, while a worse reading may have the opposite effect. Find out more with the help of the DailyFX economic calendar. Forecast for China’s NBS Manufacturing PMI Bloomberg and DailyFX are the sources for this information. Asia- Markets across the Pacific are poised to recover from yesterday’s losses. Japan, Australia, Hong Kong, Taiwan, Singapore, Malaysia, India, and Thailand have green futures, while mainland China and South Korea have red futures. The Hong Kong market will be closed on July 1st to commemorate the establishment of the Hong Kong Special Administrative Region. Looking back to Tuesday’s close, four of the nine Dow Jones sectors ended the day higher, with 40 percent of the index’s components ending the day higher. Consumer discretionary (+0.98%) and information technology (+0.60%) outperformed, while communication services (-1.28%) and industrials (-0.89%) lagged. Performance of Dow Jones Sectors 29-06-2021 Bloomberg and DailyFX are the sources for this information. Technical Analysis of the Dow Jones Index After temporarily breaking below the “Ascending Channel” last week, the Dow Jones index has returned to it. A significant support level is at 33,320, which is the 161.8 percent Fibonacci extension, while a critical resistance level is at 34,920, which is the 200 percent Fibonacci extension. As bullish momentum diminishes, bearish MACD divergence warns that prices may be vulnerable to a technical correction. Daily Chart of the Dow Jones Index Technical Analysis of the Hang Seng Index: For the second time, the Hang Seng Index is attempting to breach the neckline (29,300) of the “Double Bottom” pattern. A successful effort might open the door to much more upside potential, with the prior high of 31,180 in mind. The MACD signal is bouncing around the neutral line, indicating that the index may lack clarity in the near future. Daily Chart of the Hang Seng Index Technical Analysis of the ASX 200 Index: This week, the ASX 200 index retreated from all-time highs and began a technical correction. After a period of consolidation, prices have most likely established a “Bull Flag” pattern, indicating further upward potential. The 20-day SMA line (7,290) and then 7,200 – the 127.2 percent Fibonacci extension – provide immediate support. The upward-sloped SMA lines indicate that the general bullish trend is still intact. 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.
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