Source: IG Charts
Nasdaq 100, DAX 30, ASX 200 Price Outlooks:
- The Nasdaq[1] 100 will look to capitalize on strong earnings from its most important members
- The DAX 30[2] suffered a breakdown last week but could look to ride the coattails of US indices
- Elsewhere, the ASX 200[3] will await an interest rate decision and monetary policy report from the RBA
Nasdaq 100 Forecast
Outlook: Bullish
The Nasdaq 100 climbed higher last week as stellar earnings from big tech companies[4] and an accommodative Federal Reserve worked to override abysmal GDP readings. Still, turbulent price action on Friday could suggest a continued surge in risk appetite following the positive quarterly results is far from certain. As the major Nasdaq 100 components have already reported, earnings season will begin to see its influence over tech sentiment wane which will leave the tech-heavy index grasping for the next influencer.
Source: DailyFX Economic Calendar[5]
To that end, US unemployment figures slated for release on Friday could present the next major data point for the Nasdaq. Thus, the lack of scheduled event risk compared to the week prior may allow traders to establish a trend in price action after apprehension crept into the market last week. Further still, the remarkable results from the leaders of the covid recovery rally should help stoke risk appetite, so if bulls are looking to capture higher ground, they have ammunition and a relatively clear horizon.
Nasdaq 100 Price Chart: 4 – Hour Time Frame (May 2020 – August 2020)
DAX 30 Forecast
Outlook: Neutral
Similarly, the DAX 30 has little to work with next week in regards to scheduled event risk. Therefore, the DAX may do as it has done for weeks
