Asia markets keeping high hopes for the trade talks

Markets remain pondering the outcome of the US-China trade talks in the lead up to the December 15 tariffs deadline, seemingly keeping the hopes high going into the Friday session for the Asia region.

In more of the same updates, China officials had reflected ‘close contact’ with US trade representatives, items to keep both sentiment and prices supported. The Dow and the S&P 500 Index had certainly chalked up mild gains in the overnight session, with all but three sectors on the comprehensive S&P 500 index sustaining in green. Likewise, for Asia markets, mild gains look to be the tone kickstarting the Friday against the current backdrop. The wait continues for the outcome of the trade talks with any trade deal pertinent to keep this atmosphere going past next week.

On an intraday basis, the consolidation may well sustain with the wait for the US jobs report where strong expectations had been pencilled in. A consensus 180k is set against the 128k recorded for October while the unemployment rate looks to hold steady at 3.6% and the average hourly earnings one to accelerate moderately to 0.3% month-on-month. Encouraging signs in the form of the Thursday’s jobless claims had shown a smaller than expected reading for end-November. Any outperformance on the payrolls front could be one to provide both the US market and the greenback with a short-term boost. As it is, the US Dollar Index can be seen exhibiting a double top formation that could threaten further downside from here.

OPEC deeper cuts

Meanwhile OPEC and co. were noted to be moving towards deepening the production cut by 500k barrels per day (bpd) from the 1.2 million bpd at present, pending the official announcement today. This should represent a mild boost for crude oil prices, though the fact of the matter remains that both compliance and demand continue to pose challenges for oil prices.

Brent crude oil had averted a slide past $60/bbl with hopes on US-China trade and a drawdown in US crude inventories aiding in the recovery this week. Any deterioration in the on-going US-China trade talks may nevertheless pose the biggest short-term threat for the current trend.

Yesterday: S&P 500 +0.15%; DJIA +0.10%; DAX -0.65%; FTSE -0.70%

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices 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.