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.

Markets awaiting the G20

A mixed commencement to the week is expected once again for Asia markets with the anticipation now up ahead for the G20 Trump-Xi meeting.

Rangebound trade?

To recap, we have seen Wall Street largely waffling last Friday, the likes of the Dow and the S&P 500 indices lacking strong impetus for another record close. The Trump administration’s further blacklisting of five Chinese tech companies ahead of the G20 meeting had perhaps not been the best piece of news for markets with sentiment hinging on US-China trade relations. That said, neither had things taken any significant step for the worse within the market.

Markets may well remain headline-driven in the countdown to the G20 meeting, though one should not be surprised that with the swivelling of information, indices across the US to Asia could see a more rangebound trade awaiting the conclusions at the end of this week. Evidently the G20 will be the biggest item on the table this week, whereby we have outlined the expectations for the meeting in our Asia week ahead. Watch for prices oscillating the current 2950 levels in the week on the S&P 500 index while also keeping an eye for Fed speakers into Tuesday and economic data.

Source: IG Charts

Upward bias for crude oil

Meanwhile concerns over geopolitical issues, in particular Iran, would keep the bias to the upside for crude oil prices and may provide a boost for energy stocks this week. Brent crude oil can be seen trading above $65 per barrel with the US set to impose new major sanctions on Iran on Monday that could risk further retaliation. Look to prices edging towards the $68.30 level should further heightening of tensions be seen. Although, the overarching driver for crude oil prices may remain with demand that would render the G20 meeting Trump-Xi meeting likewise of paramount importance for prices.

Source: IG Charts

Asia open

Amid the anticipation for the G20, Asia markets may likewise waffle along awaiting the conclusions. A mixed start to the week is expected with early movers including the ASX 200 and Nikkei 225 finding moderate losses moving into the session. Look to the rest of the region potentially taking a similar tone with the abovementioned blacklisting of Chinese tech companies by the US blanketing sentiment. One would note that with the expectation for Fed cuts and the uncertainty with regards to the G20 this week, USD/JPY can be seen hanging just above resistance at present. The CFTC commitment of traders’ report had notably registered a tick up in terms of yen bets, one to watch for further downsides here.

For the day ahead, a string of data is expected but perhaps little to sway from the current tone within markets. Singapore’s May core CPI is set to be little changed at 1.3% YoY while the headline CPI may decelerate slightly.

Source: IG Charts

Friday: S&P 500 -0.13%; DJIA -0.13%; DAX -0.13%; FTSE -0.23%

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.

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