- Summary:
- The Dow Jones, DAX index, and S&P 500 futures are rallying while the dollar index has fallen ahead of the nonfarm payroll numbers from the United States
US equities ended the third quarter in the green as investors remained optimistic of a new stimulus deal. The Dow Jones rose by 330 points while the S&P 500 and Nasdaq 100 rose by 0.83% and 0.75%, respectively. The same trend is going on in the futures market, where the three indices are up by 0.90%, 0.75%, and 0.73%, respectively.
In Asia-Pacific, the Nikkei 225 is unchanged while in Australia and New Zealand, the benchmark indices are up by 1% and 0.75%, respectively. China’s and Hong Kong’s markets are closed today as the country starts the mid-autumn festival.
Meanwhile, in Europe, futures are in a strong uptrend as well. The DAX index, FTSE 100, and CAC 40 are up by 0.85%, 0.47%, and 0.70%. In all, European, American, and Asian equities finished their second straight quarter in the green.
Elsewhere, the commodities market is relatively strong today. Brent and WTI crude oil price is up by more than 0.30% while gold and silver price is up by 0.35% and 1.70%, respectively. Copper too has gained 0.70%.
In currencies, the US dollar index is down by 0.22%. That is because the greenback has dropped against all the major equivalent currencies like the euro, Swedish krona, and the Canadian dollar.
Today, the focus will be on global PMI numbers that will be released by Markit. Based on the flash manufacturing PMIs released last week, analysts expect the data will show that the manufacturing sector continued to improve. The Labour department will also release the initial jobless claims data from the United States.
Also, the Dow Jones and other American indices will move according to how stimulus talks go in Washington.
Dow Jones technical outlook
The daily chart shows that the Dow Jones futures are in its second consecutive day of straight gains. The chart also showed that the pair found strong support at the important level of $26,510. Also, it has also moved above the 25-day exponential moving average.
All this send a signal that bulls are prevailing, which means that the index is likely to test the next resistance at $29,143. On the flip side, a move below last week’s low of $26,510 will invalidate this trend.
Dow Jones Daily Chart
