CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Asia morning update - anticipating trade talks

Mixed but mostly flat markets are expected in Asia with the wait for the US-China talks carrying on. What seems like a vacuum of leads provides little, though the greenback strength had captured the market’s imagination.

Wall Street had mostly responded to corporate news and not much more in Monday’s session, finding the lack of direction amid the dearth of fresh leads. Mixed sectoral performance on the S&P 500 index saw industrials leading with the help of company specific news. Interestingly, alongside the tech sector, both had been amongst the strongest in terms of earnings beat thus far in the season. The S&P 500 index’s industrial sector ETF (XLI ETF) remains in anticipation of a breakout from the ascending triangle pattern, one to count on the US-China trade negotiation among others for direction moving forward.

Certainly, there had been fresh news of US secretary of state Michael Pompeo looking to issue an ultimatum to nations engaging Huawei Technology Co. as a supplier, adding teeth to the relations. The focus, however, appears to be set ahead to the trade talks with the Asia region due to open mostly near neutral in anticipation. For the day ahead, a slew of tier-2 data had been queued, though finding little that would likely throw the market off track. Earnings, perhaps may be one to garner stronger interest instead. And across the likes of markets such as the local Straits Times Index, another day to watch the flatlining trade continue.

Despite the lack of prominent leads from various ends, the US Dollar strength had however been gathering, likely a result of the risk aversion attitude that continues to hold amid the concerns. Both the themes of slowdown in Europe and the US-China uncertainty appears to be propelling the evasion to the greenback with the relatively closed nature of the US economy appealing to concerned investors. While the Federal Reserve had turned dovish with the pause in their rate hike trajectory, the falling in line of central bankers around the world and the increased likelihood of rate cuts had altogether also boosted the US dollar. As seen for the US dollar index, prices had again touched resistance. Once again, watch the potential coming off of EUR/USD that could trigger further buying for USD, while a renewed government shutdown would provide resistance to short-term upsides.

Yesterday: S&P 500 +0.07%; DJIA -0.21%; DAX +0.99%; FTSE +0.82%

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.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.