Asian futures:

  • Australian ASX 200 futures are up 22 points (0.3%), the spot market is currently valued at 7,274.20.
  • Japanese Nikkei 225 futures are up 330 points (1.2%), the spot market is currently expected to open at 27,718.16
  • Hong Kong Hang Seng futures are up 57 points (0.21%), the spot market is currently expected to open at 27,316.25

UK and Europe:

  • UK FTSE 100 index rose 36.74 points (0.54%) to close at 6,881.13
  • The European Euro STOXX 50 index gained 27.81 points (0.71%) to close at 3,956.34
  • The German DAX index rose 83.07 points (0.55%) to close at 15,216.27
  • The French CAC 40 index gained 50.88 points (0.81%) to close at 6,346.85

Tuesday US Close:

  • The Dow Jones Industrial gained 549.95 points (1.62%) to close at 34,511.99
  • The S&P 500 Index gained 64.57 points (1.52%) to close at 4,323.06
  • The Nasdaq 100 index gained 179.116 points (1.23%) to close at 14,728.21


Wall Street snapped a losing 4-day street as better-than-expected earnings rekindled economic optimism, putting the spread of the delta variant on the back burner.

Small cap stocks have been performing very well with the Russel 2000 recovering nearly 3% and the S&P SC 600 up 3.03%. The Nasdaq banking index rose 2.65%, outperforming the Nasdaq 100 which climbed 1.23% to close above its 10-day EMA, the FAANG index rose 1.18%.

All S&P 500 sectors were in the green led by health and financials, 5 sectors outperformed the S&P 500 which rose 1.43% and recovered from its 50 day EMA. Travel stocks outperformed to see Norwegian Cruise Line Holdings (NCLH) and American Airlines Group (AAL) rise to around 8.3%. Netflix (NFLX) fell more than 3% in after-hours trading on weaker profits.

the ASX 200 found support yesterday above its uptrend line, the 50-day EMA and lower limits of its side range. Given the rebound on Wall Street (and the fact that SPI 200 futures are higher), we think it’s likely that it will re-test the upper bounds of that range in the next session (s). . Further ahead, a breakout to new highs assumes a bullish continuation while any sign of weakness near the highs suggests the range is not ready to break. A break below the range potentially marks a top.

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Internal ASX 200 market:

ASX 200: 7252.2 (-0.46%), July 20, 2021

  • Healthcare (0.91%) was the strongest sector and materials (-1.82%) were the weakest
  • 8 of the 11 closed areas below
  • 63 (31.50%) shares rose, 129 (64.50%) shares fell
  • 64% of stocks closed above their 200-day average
  • 52.5% of stocks closed above their 50-day average
  • 40% of stocks closed above their 20-day average


  • + 6.27% – Oil Search Ltd (OSH.AX)
  • + 5.41% – Zip Co Ltd (Z1P.AX)
  • + 3.73% – JB Hi-Fi Ltd (JBH.AX)


  • -6.19% – Nickel Mines Ltd (NIC.AX)
  • -6.10% – Unibail-Rodamco-Westfield SE (URW.AX)
  • -4.98% – Santos Ltd (STO.AX)


Signs of a corrective rebound were also seen in currency markets, although relative to US indices they appear relatively weak. the Pound sterling has failed to recover as traders remain wary of the lifting of foreclosure restrictions in the UK.

The US dollar index (DXY) hit a new 3 month high but gave up about 2/3rd initial gains to close with a bearish hammer at its highs.

the Canadian dollar was the strongest currency, supported by a rebound in oil prices and a large rebound in riskier assets. That said, volatility was low compared to Monday’s sell off, so we use the term ‘risk-on’ lightly, although yesterday we wondered if a retracement could be considered given the decline in bearish volatility observed. during the previous Asian session.

EUR / CAD broke a four-day winning streak and came back firmly below his 200-day EMA. NZD / CAD Also slipped back below its 200-day EMA to its 3-day low after Monday’s bearish hammer blow. If volatility were to decrease, we would reconsider long positions above a portion of our bullish wedge target around 0.9082 (with 0.9000) as an intermediate target.

EUR / USD continues to wrap in a potential bullish wedge above 1.1772 support ahead of tomorrow’s ECB meeting.

Both AUD / JPY and NZD / JPY rebounded on their 200-day EMAs after brief intraday declines under them yesterday.

AUD / USD fell to 0.7300 overnight following the RBA’s dovish minutes, prompting several banks to say they now expect the RBA to reverse its earlier cut given prolonged lockdowns in parts of Australia.

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Merchandise :

WTI Futures held above the trend support mentioned in yesterday’s video, although its rebound was disappointing to say the least, closing with a small Doji on the daily chart.

Gold remains restless as always and therefore a “stay away” until the momentum points his hand. Silver fell for a third session to a 3 month low. With no immediate signs of a bottom (although it can be argued that it is too broad on the downside), there remains a market for the bears to consider merging into minor rallies.

To come (hours in AEST)

  • Japanese exports are expected to increase by around 65% in June.
  • The BOJ publishes its minutes although no fireworks are expected.
  • Australian retail sales are expected to contract -0.6% (thanks to these pesky lockdowns). The AUD is already on the back ropes, but perhaps a bigger than expected failure could weigh more on the currency as it fuels weaker growth and further strengthens the RBA’s dovish stance.

You can see all the events scheduled for today using our economic calendar, and keep up to date with latest market news and analysis here.

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