“China’s cooling high-end real-estate market is raising short-term uncertainties. HSBC analysts say in a research note, and call for more policy support. Developers’ project launches have been delayed slightly due to subdued sales momentum. […] The property market is entering a period of softened sentiment, stuck in a policy vacuum.”
Residential housing sales areas reportedly slid 6.8% YoY in October, down sharply from September’s 5.5% drop.
US Stock Futures: US Data and the Fed in Focus
Futures trended higher during Friday’s Asian session. The Dow Jones E-mini gained 55 points, the Nasdaq 100 E-mini advanced 43 points, while the S&P 500 E-mini gained 11 points.
Later on Friday, US economic indicators will face market scrutiny as traders await delayed reports to assess inflation trends and labor market conditions. US producer prices and retail sales figures are set for release. Further delays to economic data releases may test demand for US stock futures. A lack of data has grown concerns about the labor market and the Fed rate path.
Risk assets could face another day of intense selling if producer prices edge higher and retail sales dip in October. Rising inflationary pressures and weakening consumption would signal stagflation risks. With the Fed focused primarily on inflation, rising stagflation risks could send US stock futures lower for the second session.
Beyond the numbers, traders should closely monitor FOMC members’ speeches. Views on inflation, the labor market, and monetary policy will move the dial.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Despite Thursday’s sell-off, US stock futures remained well above their key technical levels, indicating a bullish bias.
Near-term trends will hinge on US data and Fed chatter. Key levels to monitor include:
Dow Jones:
- Resistance: 48,000 and the November 12 record high of 48,528.
- Support: 47,500, 47,000, and the 50-day EMA (46,779).