Asia market morning update - relief for Asia markets
Relief had spread through Wall Street at the start of the week, one to inspire Asia markets into this Tuesday session. The session ahead will also be one watching political developments on Brexit.
US retail sales aid
US markets concluded the losing streak last week with aid from the better-than-expected retail sales reading and the tech sector boost sending prices higher on Monday. It had only been of recent memory seeing the poor retail sales reading from December 2018, and alas the latest surprise, particularly from the ‘control group’ at 1.1% had been one to relief the markets of the growth worries and government shutdown implications. Feeding into the GDP computation, the control group’s reading had outperformed the market’s 0.3% expectation and marks the highest reading in four-years, dismissing last week’s worries to some extent. Concurrently, re-rating for Apple and Nvidia’s diversification have bolstered technology stocks.
The broad-based rally, whereby all sectors on the S&P 500 index concluded Monday in green, altogether marks a turn in sentiment that would be one to transpire to Asia. Prices across both the Dow and S&P 500 index had also both headed back up towards resistance levels. Perhaps the key to note today will be the February CPI data with any surprise on the upside still one to concern ourselves with in light of the implication for the data-driven Fed.
Over and above data, it will be the start to politics watch as well, though as we have already seen overnight, the pound have had a wild ride. Read on the details we’ve penned out earlier on the successive votes expected. Notably, however, the latest progress seen had led to the downward plunge for EUR/GBP past the 0.8535 support, keeping the downtrend going. One to watch for continuation in the session ahead, though prices can be seen threatening oversold territory as of yet.
Amid the wave of gains on Wall Street at the start of the week, look to Asia markets to follow in those footsteps. A series of tier-2 data will be out in the region including the likes of the Singapore’s retail sales and China’s FDI data, but the focus goes ahead to the CPI numbers in the US to keep the strength going.
Yesterday: S&P 500 +1.47%; DJIA +0.79%; DAX +0.75%; FTSE +0.37%
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 30
- The only provider to offer 24-hour pricing
Live prices on most popular markets