Novox 11.26 Reference of Fx market
Markets are reassessing the implications of recent vaccine breakthroughs. This is after Modena’s chief doctor waned that vaccines may not prevent the transmission of the virus from vaccinated people to the unvaccinated, adding the public should not “over-interpret the results”. That means it may take longer time for business activity to normalize to pre-Covid levels as it is unclear how effective the vaccines are in containing the spread of the virus.
Asia-Pacific markets look set to follow a bearish US lead, with equity futures pointing to a lower start in Japan, mainland China, South Korea, India and Singapore. These markets have already pulled back from intraday highs on Wednesday as sentiment soured. Singapore’s Straits Times Index (STI) has gained over 18% month-to-day, rendering it vulnerable to a technical correction should profit-taking activities pick up.
US macro data were largely mixed overnight, with the initial jobless claims pointing to further weakness in the hiring market while durable goods orders beat expectations. The weekly jobless claim report registered 778k for the week ending November 21st, marking a fifth-week high (chart below). The core PCE price index – a key inflation gauge of the Fed – rose 1.4% in October, in line with expectations.
Sector-wise, 7 out of 11 Dow Jones sectors ended lower, with about 63.3% of the index’s constituents closing in the red. Energy (-3.64%) , materials (-2.25%) and communication services (-1.24%) were among the worst performers, while consumer staples (+0.29%) and consumer discretionary (+0.18%) outshined.
Dow Jones Sector Performance 25-11-2020
Straits Times Index Outlook:
The Singaporean stock market saw institutional money inflow for three weeks in a row, with S$309.3 million pumping in last week (chart below). Fund managers’ top picks include banks, real estate, aviation, transportation and food & beverages stocks. Although institutional inflow may underpin medium- to long-term prospects for Singaporean stocks, a healthy pullback may still be seen in the days to come as the rally appears to be over-stretched.
Straits Times Index – Daily Chart
Nikkei 225 Index Technical Analysis:
Technically, the Nikkei 225 index is riding a bullish trend with strong upward momentum. The index hit a multi-year high of 26,700 yesterday before entering into a brief consolidation. The overall trend remains bullish-biased, albeit some near-term pullback may be seen before it attempts higher highs. An immediate support level can be found at 26.366 – the 38.2%% Fibonacci extension.
Nikkei 225 Index – Daily Chart
ASX 200 Index Technical Analysis:
ASX 200 Index – Daily Chart