Dow Jones May Lead Hang Seng, Nikkei 225 lower Post ECB Disappointment

Dow Jones May Lead Hang Seng, Nikkei 225 lower Post ECB Disappointment

Sep 11, 2020 (MENAFN via COMTEX) —

(MENAFN – DailyFX) DOW JONES, HANG SENG, NIKKEI 225 INDEX OUTLOOK:

Dow Jones retreated 1.45%, with over 90% of its components falling; US core inflation in focus Hong Kong’s Hang Seng Index (HSI) may open lower, testing a key support at 24,100 Japan’s Nikkei 225 index stayed composed below a key resistance at 23,300 as USD/JPY ranged Dow Jones Index Outlook:

The Dow Jones Industrial Average (Dow) let go earlier gains and ended 1.45% lower. Prior to Wall Street open, the ECB set a neutral tone on its monetary policy, keeping its policy rate unchanged. ECB Chairwoman Christine Lagarde didn’t sound too alarmed about the currency’s recent strength. The euro let go earlier gains and swung lower as sentiment turned sour. The US Dollar index gained, suggesting that market participants were prioritizing safety.

Investors are perhaps disappointed, as many have expected further ECB easing measures to be announced amid Covdi-19 complications and the recent fall in Eurozone inflation.

On the macro front, traders are eyeing Friday’s US inflation data for clues about Fed’s future policy guidance, although the Fed Chairman Jerome Powell said in the last meeting that the central bank will allow inflation to overshoot before stabilizing at a long-term goal at 2%. Market foresees a 1.6% annualized core CPI rate in August. A large deviation from expectations may bring some impact on the US Dollar, gold , crude oil and stocks.

US Core CPI YoY – Aug 2020

Source: Bloomberg, DailyFX

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