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 - cautiously awaiting conclusions

The stalling looks to continue into the end of the week for Asia markets as the second day of talks continues in Beijing and President Xi Jinping is expected to meet US officials.

As seen with US markets, movements had been kept moderate in the US with a sense of anticipation carrying on. Data dampener did arrive in the form of the backdated December retail sales data which nosedived to the weakest reading since 2009 at -1.2% year-on-year. The key ‘control group’ which feeds into the GDP accounting likewise disappointed at -1.7%, altogether making for poor indications on growth as we await that reading into the end of February. That being said, seasonal factors and the government closure during the period had been listed as reasons motivating the market to overlook the item at present and instead focusing ahead to pending fresh updates from the trade talks. Assessing the market movements, across the moderate 0.27% and 0.41% drop on the S&P 500 Index and Dow respectively, the consolidation sustains without much of a semblance of a direction still.

Political noise meanwhile had been notable surrounding the border wall funding in the US, though the government shutdown appears to be one matter laid to rest for now as the aversion is expected. President Donald Trump is expected to sign the latest spending bill to keep the government open, putting to rest some of the worries over the reversion to a government shutdown that would have kept shaving away at economic growth. On the other hand, however, the President had announced his intention to declare a national emergency to garner funding for the border wall. This may well result in further political noise for the market with Democrat house speaker Nancy Pelosi indicating the likelihood of an ensuing legal challenge, a practise that had blocked previous executive orders.

For the markets, however, the worries had been kept to a minimum. The greenback held steady as seen via the USD index that remained around 97.0 levels this morning. Watch the US-China trade indications for fluctuations into the end of the week. Brexit issues likewise in a stalemate that maintains the risks to the downside for the likes of EUR/USD. This comes after GDP readings in zone afflicted markets to only a slight extent.

Captiousness prevailing for Asia marks ahead of the trade talks conclusions have weighed on early movers in the region. This morning’s release from Singapore also saw the revised Q4 GDP coming in lower than expected at 1.9% year-on-year, more to add to growth worries for the region.

Look to the data release in the day including China’s factory gate inflation movement after yesterday’s trade surprise. The key driver for markets may however remain with the trade talk conclusions. One should not be surprised if we should find a delay in the update as the US delegates reports back to the US. Nevertheless, the broad direction in which expectations are pointing is for the continued working relationship between the two countries towards a deal. The expected extension of the March 1 deadline for negotiations, if materialized, would also be taken in a positive light by markets.

Yesterday: S&P 500 -0.27%; DJIA -0.41%; DAX -0.69%; FTSE +0.09%

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.