Lacklustre trade for Asia

The lack of strong impetus once again sees Asia markets trading mixed into Tuesday. This comes after Wall Street chalked up fresh records, albeit with very mild gains.

Citigroup’s higher earnings

The highly anticipated bank earnings release saw Citigroup commencing with a beat on both counts of profit and revenue. Earnings per share of $1.95 slightly beat the Street’s estimation of $1.80 which had perhaps been a relief for markets. That said, this came with the IPO of a subsidiary while the bank’s trading business was noted to be weak in Q2. Alongside the report of an interest margin squeeze, it had altogether not helped the financial sector which slipped 0.53% on the S&P 500 index in the session overnight. In turn, for the financial sector ETF (XLF ETF), prices had likewise slipped below the $28.17 resistance once again, one to look to the likes of JPMorgan and Goldman Sachs releases for any boost or signs of retracement as prices remain at inflection point.

Source: IG Charts

Crude oil slide

Notably, crude oil prices can be seen trading lower going into the week. Brent crude oil dipped to $66.20 per barrel overnight, holding between its 50 and 100-day moving averages. Supply concerns from the diminishing impact of tropical storm Barry and a deteriorating demand outlook can be seen taking a toll on prices, likewise weighing on energy stocks. While prices do look to be attempting to form a higher low here and have yet to exhaust the uptrend, there appears a lack of strong factors to swing prices higher. Watch for a break on the downside below the shorter-term 50-DMA of around $66/bbl that could invite further pressure for prices.

Source: IG Charts

Asia open

As told above, the lack of impetus for Asia markets have kept prices trading in a lacklustre fashion this morning. China’s in-line Q2 GDP release coupled with the surprise in the June high frequency indicators on Monday had been positive signs but also a difficult read into the outlook, resulting in moderate movements for Asia markets. A quiet session is seen for Asia, while the US session will see attention on US’ June retail sales and industrial production to assess how the data had fared against China’s improvement.

Yesterday: S&P 500 +0.02%; DJIA +0.10%; DAX +0.52%; FTSE +0.34%

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.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

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.