Morning Briefing: Major World Equities Market Indexes
$DIA, $DAX, $DJSH, $N300, $NSEI
Commentary: Global equities reversed overnight and look Bullish in here as the DIA broke Key resistance.PE
Notes: The S&P 500 advanced 0.2% Monday, closing higher for a 3rd session running, and is now just 0.6% below its 26 January record high.
Optimism ahead of resumed trade talks between the US and China kick off Wednesday, and that helped drive the Bullish bias in the US, and helped drive stocks higher across the globe.
China’s Shanghai Composite rallied 1.1% Monday, rebounding from a two-year low, and Germany’s DAX led the way in Europe with a gainer of 1.0%.
8 of 11 S&P sectors finished Monday in the Green, with consumer discretionary (+0.6%), industrials (+0.6%), energy (+0.7%), and materials (+0.7%) being the Top performers, but the Top-weighted IT sector (-0.2%) under-performed, keeping the S&P 500 down.
Tuesday’s equities in Asia
DJIA at 25758.69, +0.35%, and DAX at 12331.30, +0.99% moved up and closed just above resistances on the daily. If DIA holds above 25750 and DAX remains above 12300 the near term moves are to 12600/650 and 12500 respectively.
Nikkei at 22182.21, -0.076% has come down and could now test support at 22000 term. If the index manages to hold above 22000, it could move up to 22400 and higher medium term. In case a clear break below 22000 is seen, that could very well indicate Bearishness towards 21800-21600 going ahead.
Shanghai 2724.91, +0.98% tested to an intra-day low of 2653 Tuesday coming down to mark important support. While the benchmark Chinese index holds at 2650 then 2750-2800 may be seen in the coming sessions. But, a clear break below 2650, it make make it vulnerable to more on the Southside 2600 or lower long term.
Nifty at 11551.75% may trade along the weekly trend resistance and slowly move towards 11600-11800 near term. Be cautious and watch to see of Nifty holds above 11500 in here, or comes off to below 11500 again, as that could tell us about lack of strong Northside momentum in here.