Market Brief: Festive Cheer Comes Early For Stock Bulls
Kelvin Wong December 13, 2019 1:24 AM
A summary of news and snapshot of moves from today’s Asia session.
- Asian stock markets are in “risk on” mood to celebrate a festive cheer with a treble of positive news flows; U.S. President Trump has approved the terms of the Phase One U.S.-China trade deal and suspended the additional 15% tariff on China products that are set to take place on 15 Dec, the U.S. Federal Reserve’s has expanded its repo programme to US$365 billion through Jan 2020 in the short-term funding market to prevent any disorderly funding squeeze and U.K PM Boris Johnson’s Conservative party that has won a majority in the UK snap general election that is likely to see greater clarity for Brexit.
- Meanwhile, the latest Bank of Japan’s “tankan” quarterly survey has showed that big Japanese manufacturers’ business mode sank to a near 7-year low, the 4th consecutive quarter of decline.
- The Nikkei 225 has shrugged off the lackluster “tankan” data and stage a magnificent rally of 2.64%, the best intraday performance seen so far in the past 10 days led by Basic Materials and Consumer Cyclicals stocks. These two sectors have gained by 3% and 2.44% respectively.
Price Acton (derived from CFD indices):
- Japan 225: Bullish breakout from 23650 medium-term range resistance in place since 07 Nov 2019. Short-term support now at 23780 (today’s Asian session gapped up) with further potential upside towards intermediate resistance at 24400 (01 Oct 2018 major swing high area).
- Hong Kong 50: Underperformer in the past 6-month has surged as well. Short-term support now at 27100 (former minor swing high areas of 19/26 Nov 2019 with further potential upside to test the next intermediate resistance at 28000/2000 (former minor range support from 26 Jun/15 Jul 2019 & 61.8% retracement of the previous slide from 03 May to 15 Aug 2019 low).
- Australia 200: Continued to be stuck inside a range bound configuration. Expect sideways movement between 6780 and 6670. Bulls need to have a break above 6780 for a potential push up towards 6840 intermediate resistance in the first step (former minor swing lows of 29 Nov/02 Dec 2019).
- Germany 30: Bullish breakout above the 13350 medium-term range resistance in place since 19 Nov 2019. Eyeing the all-time high area of 13600/750 next in the first step with short-term support now at 13190 (former minor rang resistance from 05 Dec/09 Dec & minor ascending trendline from 10 Dec 2019 low).
- US SP 500: Bullish breakout above 3147 minor descending trendline from 02 Dec 2019 and surged to a fresh new all-time high, printed a current intraday high of 3183 in today’s Asia session. Key short-term support now at 3155/3150(the former all-time high area printed on 28 Nov/02 Dec 2019 & lower boundary of a minor ascending channel from 03 Dec 2019 low) with a further potential upside to target 3200/220 next (Fibonacci expansion cluster & upper boundary of the minor ascending channel from 03 Dec 2019 low).
Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.