Hang Seng Tentative as Markets Monitor Encouraging Data & US AI Chip Restrictions
HKG33 is mixed as markets digest better than expected economic releases from China, BYD’s strong profit estimate and new export bans of AI chip for the US
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HKG33 is mixed as markets digest better than expected economic releases from China, BYD’s strong profit estimate and new export bans of AI chip for the US
The index falls as markets digest the latest economic releases and plans for more AI chips export restrictions, ahead of incoming Tesla & Netflix quarterly results, as well as scheduled speech by Fed Chair Powell
The US 10-year real yield is moving higher. Its green 5-day EMA is pulling away from its orange 10-day EMA (black circle) and the RSI is moving higher and away from 50 (green rectangle). As yields appreciate, they tend to act as a headwind to the risk side of the market.
As Q3 earnings season kicks off the SPX500 is looking subdued. It has charted a lower peak followed by a lower trough. This puts the weekly chart into downtrend. The black 30-week EMA is showing signs of support, but the candlesticks will need to break above the green down sloping trendline to show conviction.
HKG33 stays under pressure as today’s data from China showed non-existent consumer inflation for September, while markets continue to monitor developments around the troubled property sector
The DAX is benefitting from the pullback in yields, as a risk-on sentiment tries to take hold. To this end, FXCM’s GER30 is showing signs of positivity.
In a previous article we suggested that the NAS100 had a downtrend bias to it. Price action has evolved to a point where it seems that a descending triangle (green trendlines) has charted on the weekly time frame. Assuming this to be the case, a breakout or breakdown from the pattern will have bullish or bearish implications.
The flare up in Middle East violence sparked risk-off mood, but SPX500 overcomes it, with the help of dovish Fed commentary, as markets now turn to the new earnings season and the inflation update
HKG33 falls to the lowest levels in nearly a year on fresh concerns around China’s troubled real estate market, as the Golden Week approaches
Similar to yesterday’s article, the NAS100 is also showing worrying signs of technical weakness. Like the SPX500, the NAS100 has charted a lower peak followed by a lower trough. This puts the growth index into a defined downtrend. Its weekly RSI has also dipped below 50, which is on the bearish side of the indicator. If it maintains below 50 for an extended period, the NAS100 will be under pressure.
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