Lower treasury yields helped buoy Wall Street overnight, with the Nasdaq 100 leading the rally with a 1.5% gain.Lower treasury yields helped buoy Wall Street overnight, with the Nasdaq 100 leading the rally with a 1.5% gain.
- Australia’s ASX 200 futures are up 20 points (0.28%), the cash market is currently estimated to open at 7,065.90
- Japan’s Nikkei 225 futures are up 160 points (0.56%), the cash market is currently estimated to open at 28,524.61
- Hong Kong’s Hang Seng futures are up 98 points (0.35%), the cash market is currently estimated to open at 28,510.26
UK and Europe:
- UK’s FTSE 100 index rose 33.54 points (0.48%) to close at 7,051.59
- Europe’s Euro STOXX 50 index rose 9.8 points (0.24%) to close at 4,035.58
- Germany’s DAX index rose 67.25 points (0.44%) to close at 15,437.51
- France’s CAC 40 index rose 22.08 points (0.35%) to close at 6,408.49
Monday US Close:
- The Dow Jones Industrial rose 186.14 points (0.54%) to close at 34,393.98
- The S&P 500 index rose 41.19 points (1%) to close at 4,197.05
- The Nasdaq 100 index rose 230.016 points (1.72%) to close at 13,641.75
Wall Street points to a firmer open for Asian indices:
Sentiment was also lifted by a minor rebound on Bitcoin, which rose to a two-day high. The US 10-year yield (1.6%) fell -2bps and the 30-year (2.3%) was down -3bps. The S&P 500 rose 1% to a two-week high, led by communication services sector (1.84%) and technology (1.76%). MGM Resorts (MGM), Caesars Entertainment and Twitter were the top performing stocks, rising 5.1%, 4.9% and 4.8% respectively. But it was the Nasdaq 100 that was the top performer with a 1.7% rise which also closed to a two-week high. The Dow Jones was up 0.5% and the Russell 2000 rose 0.55% (growth stocks rose 0.65% and value stocks rose 0.45%).
Futures are pointing to a firmer open for Asia with SPI 200 futures up 0.28%, Hang Seng futures rising 0.35% and CSI300 futures currently 0.49% higher.
The ASX 200 is set to open just beneath Wednesday’s high (which was a large bearish candle). This also takes prices just above the 20-day eMA, so it’s a distinct possibility we could see prices break above 7066 and head for the 7085 swing high if Wall Street’s sentiment is carried over to Asian trade today. Whether it can muster up the strength to rest the 7100 handle remains to be seen but a daily close above 7085 would be constructive. It would take a break below 7000 to regain our bearish interest on the daily chart.
ASX 200 Market Internals:
ASX 200: 7045.9 (0.22%), 24 May 2021
- Healthcare (1.49%) was the strongest sector and Materials (-1.09%) was the weakest
- 8 out of the 11 sectors closed higher
- 3 out of the 11 sectors outperformed the ASX 200
- 118 (59.00%) stocks advanced, 73 (36.50%) stocks declined
- 3 hit a new 52-week high, 2 hit a new 52-week low
- 66.5% of stocks closed above their 200-day average
- 40.5% of stocks closed above their 20-day average
- + 14.7% – Kogan.com Ltd (KGN.AX)
- + 5.82% – Gold Road Resources Ltd (GOR.AX)
- + 5.09% – Westgold Resources Ltd (WGX.AX)
- -4.60% – OZ Minerals Ltd (OZL.AX)
- -4.17% – Fortescue Metals Group Ltd (FMG.AX)
- -3.56% – AMP Ltd (AMP.AX)
NZD was the strongest FX major: