ASX 200

Market Brief: China Markets Lower after 8 Straight Days of Gains ASX Ends Lower For the Week

Chinese markets fell for the first day this week mirroring Wall Street and Asian indices as the fear of a second coronavirus wave rise after the USA reported more than 60,500 new coronavirus cases. Investors concern that the rising new infections might lead to a second lockdown that will halt the economic recovery.

In Japan, the Producer Price Index (PPI) came in at 0.6% above the forecast of 0.4% in June, the yearly reading for the Producer Price Index came in at -1.6% also above the expectations of -1.9%.

Nikkei 225 finished 1.06% lower at 22,290. The Shanghai Composite index halted the eight straight days of gains and is 1.95% lower at 3,383. The Singapore Straits Times index is 0.63% lower at 2,652. Hang Seng is 2.34% lower at 25,587.

ASX 200 Ends the Week With Loses

ASX 200 ended 0.60$ lower at 5,919 on news of another 280 new coronavirus cases in Victoria, a new daily record. Reserve Bank of Australia earlier this week kept interest rates unchanged at 0.25% matching analyst’s expectations. Yesterday reported that Home Loans came down to -7.6% in May from previous -4.4%. Investment Lending for Homes also came down to -15.6% in May from previous -4.2%. 

On the technical side, the initial support for the ASX index will be met at 5,899 the daily low. In case of a break lower, sellers might test the next support area at 5,819 the low from June 30. Next support for the ASX 200 index is at the 50-day moving average at 5,758.   

On the other hand, the first resistance for ASX stands at 5,956 the daily top. Next hurdle for ASX 200 will be met at 6,018 the high from July 18 trading session. If the ASX index breaks higher, then the next supply zone stands at 6,246 the 200-day moving average.  

 

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ASX 200 Daily Chart

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