US equities closed broadly lower last night, catalysed by a weaker-than-expected ADP payroll number as well as concerns over elevated asset prices as highlighted in the Fed’s meeting minutes a day ago.

The Dow, S&P and NASDAQ lost 0.74%, 0.94% and 1% respectively, with technology stocks being rotated out the most by investors.

The June ADP private payroll number increased 158k, a shortfall against consensus reading of 185k. The data also showed that private jobs market growth has slowed down significantly in June from May, when 253k new jobs were added. The ADP payroll number was widely viewed as a leading indicator for the non-farm payrolls data, which comes a day later. Soft ADP reading has probably lowered market’s expectation for tonight’s nonfarm payroll. As a reflection of that expectation, US dollar index fell 0.45% to 95.6 area.

Profit taking activities were observed in Asian equities yesterday, and the futures market pointed to a lower opening today. Cautious sentiment prevails as geopolitical jitters and uncertainties in central bank’s policy outlook weighs on investors’ confidence.

Today, market focus has shifted to G20 summit in Hamburg. Several important issues including free trade, climate change, boarders and immigration are on top of the agenda and could potentially spark volatility in trading. President Trump is on the centre stage again so fasten sit belt and enjoy the show.

Technical analysis

S&P 500 index

  • 10-day Simple Moving Average sloped downwards
  • SuperTrend (10,2) has flipped into bearish set-up
  • Momentum indicator MACD continued to trend down, indicating bearish momentum dominants
  • Immediate support level at 2,411 area (138% Fibonacci extension level)

Crude Oil West Texas - Cash

  • SuperTrend (10,2) remains in bullish set-up
  • 10-Day Simple moving average slopped upwards
  • Immediate support levels could be found at $44.95 and $42.9


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