A seven-day global equity rally pauses. US stocks are mixed. Asian markets retreat from winning streaks. The US dollar rebounds as Gold declines in today's session.
Profit-taking in Asian equities as USD rebounds
A seven-day rally in global equities has paused in today’s Asian session, following the overnight mixed performances seen in the major US stock indices, which saw the Dow Jones Industrial Average and small-cap Russell 2000 shed 0.7% and 1.4%, respectively. Meanwhile, the S&P 500 and Nasdaq 100 added 0.1% and 0.3% to advance to fresh all-time highs, led by mega-cap technology stocks; Nvidia (+1.7%), Amazon (+1.7%)., Microsoft (1%), and Alphabet (+0.9%).
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Asia Pacific stock markets broke their longest winning streak since January. Hong Kong’s Hang Seng Index retreated by -0.9% intraday after it hit a 3.5-year high, while Japan’s Nikkei 225 dropped by -0.9% after it almost hit its current all-time high of 42,427 yesterday. Singapore’s red-hot Straits Times Index has also started to see profit-taking activities; it declined by -0.3% intraday after its 14th consecutive session of a fresh all-time high recorded yesterday.
Today’s slide in Asian stocks is likely due to short-term overbought technical conditions and a rebound in the US dollar after four consecutive sessions of declines seen in the US Dollar Index.
The greenback traded firmly in today’s Asian session against all major currencies, with the worst performers against the US dollar at this time of the writing: CAD (-0.17%), AUD (-0.16%), and GBP (-0.13%). The intraday bounce seen in the US dollar is also reinforced by a slowdown in growth in Japan’s leading inflation gauge, where Tokyo’s core-core CPI (excluding food and energy) advanced at a slower pace of 2.9% y/y in July, a drop from 3.1% recorded in June.
Gold (XAU/USD) inched lower for the third consecutive session with an intraday loss of -0.4% in line with a resilient US dollar at this juncture. Price actions of the yellow metal are now fast approaching its 20-day and 50-day moving averages, acting as intermediate support at around US$3,333.
Our YouTube video above contains the latest intraday technical analysis on the latest intraday technical analysis on US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil
