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 market morning update - awaiting fresh leads

Moderate gains are set in store for Asia markets this Tuesday despite the apparent lack of strong leads, with hopes for benign updates from the event risks into the end of the week being a support.

Can the risk-on atmosphere be sustained?

Wall Street concluded mixed at the start of the week with little to initiate any changes in sentiment. Once again it appears that the week will not quite start until the latter half with the items we are watching. This will perhaps be a good time to ponder over whether the rally we have seen thus far can continue as we watch the likes of the US 500 index trek towards 2018’s all-time high.

As seen from the comprehensive US 500 index’s sectoral performance in the last 1-week, cyclicals had been at the forefront in gains while the defensive lagged with the risk-on mood in markets. This risk-on atmosphere had been underpinned to a large extent with receding growth worries and rising US-China optimism, with the former backed rather strongly of late by the slew of data releases such as last Friday’s jobs report.

Several factors remain up ahead that would likely keep the current rally going in US markets and have positive knock-on effect for Asia markets. Green shoots in the form of data have been ones to alter previous views that the US economy is faring worse than thought while the commencement of the earnings season brings hopes that the market could be receiving better projections even with weak Q1 performance. Likewise in China, which had been a key source of growth woes, further signs of stabilization are expected.

As far as retail contrarian goes, strong net short position on the US 500 remained the case since early this year, one to suggest continued upsides. One caveat in the very near term would be the IMF spring meetings this week that could reintroduce growth concerns with details on the ‘precarious’ global rebound previously outlined by IMF chief Christine Lagarde. Fed minutes expected midweek as well, one to weigh against this.

Asia open

Asia market is look set to start the day with mild gains despite the lack of fresh leads. Some news on trade can be seen passing through on the wires including the US administration proposing tariffs on EU products and the Japanese economy minister said to be planning the first round of trade talks with the US. Risk sentiment however had been little afflicted by the news with USD/JPY still hovering around $111.45 levels. No surprise perhaps given the current US administration’s tendency to position prior to taking action while the US-China trade talks might be occupying all the bandwidth at present. Look further ahead to the leads into the latter half of the week with a rather empty data docket in the day.

On the local Singapore market, the Singapore Index had seen rather measured moves despite the broad gains in the region on Monday with prices meeting resistance. Added caution had likely been the case as well with the Q1 GDP and MAS meeting conclusion due at the end of the week, one that could continue into the week.

Yesterday: S&P 500 +0.10%; DJIA -0.32%; DAX -0.39%; FTSE +0.07%

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.

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.