Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Asia market morning update - jobs report reassurance

Asia markets are slated for a positive start against the backdrop of the ‘goldilocks’ March jobs report out of the US on Friday.

The cause for optimism had significantly risen with last week’s updates, but a sense of cautiousness ought to prevail for markets.

Friday’s jobs report had once again invoked the sense of a goldilocks condition for US markets with the strong hiring numbers and slower-than-expected wage inflation, altogether a supportive condition for equity markets. At 196,000 additions for non-farm payrolls, this had been above the market’s 180,000 expectations which certainly lay to rest some of the worries of contraction with regards to the 20,000 weak February showing. This is while unemployment rate kept at the 3.8% low and average hourly earnings growth turned up slower than expected at 0.1% month-on-month against February’s 0.4%, providing no impetus for the Federal Reserve to react. It had been a case where the greenback had benefitted as well, enthused by the return of strong jobs additions. USD index up a touch at 97.40 levels into the end of last week.

Look to this optimism to carry through to Asia at the start of the week with the expectations further built for a benign Fed while the US labour market showed resilience in growth, keeping concerns of a slowdown at bay. As told in our week ahead, a busy week lies ahead of us at the start of Monday with updates ranging from Fed minutes to Singapore’s semi-annual Monetary Authority of Singapore (MAS) meeting and Chinese trade numbers. Much of what may move markets sits closer to the end of the week and could continue to warrant caution given the strong optimism currently baked into the market.

Levels check

S&P 500: The S&P 500 index had swept past the 2870 resistance in the previous week with the NFP report at the end of the week to help. Prices are now eyeing the September 2018 all-time high at 2940.91 with the uptrend intact, although questions are also raised as to what could drive it further. Watch the key CPI update this week with any surprises on the upside to cap gains. US-China trade talk uncertainty carries on though markets appear to grow increasingly desensitized with little fresh breakthroughs.

HSI: The upward momentum for various Asia indices such as the Hang Seng index can be seen gathering in the previous week as prices head into overbought territory. While the HSI is still expected to go ahead further returning from Friday’s holiday and the bias on the upside, watch the slew of Chinese data such as Friday’s trade numbers to support further upsides.

GBP/USD: Brexit chaos continues this week as Prime Minister Theresa May is expected to seek an extension to the 12 April deadline this week. Prices can be seen attempting a breakout on the downside of the current wedge pattern, one to watch as the bias gathers on further GBP weakness in light of the lack of resolution on the issue.

USD/SGD: This would be one pair to watch this week with both the MAS policy meeting statement and the advance estimate of Singapore’s Q1 GDP due on Friday. As shared in our MAS preview write-up, no change is expected but it will mostly be watching the Q1 GDP reading for any deviations on USD/SGD movements into either ends of its current range-bound trade.

WTI: The uptrend for crude oil had been underpinned to a large extent by supply factors of late and the weekend update of Libya unrest further adds to this phenomenon. Prices on the WTI can now be seen attempting a break on the upside with the $63.54 resistance in view, one hurdle to cross this week with the bulls strong in control.

Friday: S&P 500 +0.46%; DJIA +0.15%; DAX +0.18%; FTSE +0.61%

This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

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 Sunday. 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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.