Asia market morning update - relief for Asia markets

Relief had spread through Wall Street at the start of the week, one to inspire Asia markets into this Tuesday session. The session ahead will also be one watching political developments on Brexit.

Source: Bloomberg

US retail sales aid

US markets concluded the losing streak last week with aid from the better-than-expected retail sales reading and the tech sector boost sending prices higher on Monday. It had only been of recent memory seeing the poor retail sales reading from December 2018, and alas the latest surprise, particularly from the ‘control group’ at 1.1% had been one to relief the markets of the growth worries and government shutdown implications. Feeding into the GDP computation, the control group’s reading had outperformed the market’s 0.3% expectation and marks the highest reading in four-years, dismissing last week’s worries to some extent. Concurrently, re-rating for Apple and Nvidia’s diversification have bolstered technology stocks.

The broad-based rally, whereby all sectors on the S&P 500 index concluded Monday in green, altogether marks a turn in sentiment that would be one to transpire to Asia. Prices across both the Dow and S&P 500 index had also both headed back up towards resistance levels. Perhaps the key to note today will be the February CPI data with any surprise on the upside still one to concern ourselves with in light of the implication for the data-driven Fed.

GBP topsy-turvy

Over and above data, it will be the start to politics watch as well, though as we have already seen overnight, the pound have had a wild ride. Read on the details we’ve penned out earlier on the successive votes expected. Notably, however, the latest progress seen had led to the downward plunge for EUR/GBP past the 0.8535 support, keeping the downtrend going. One to watch for continuation in the session ahead, though prices can be seen threatening oversold territory as of yet.

EUR/GBP Mini

Asia open

Amid the wave of gains on Wall Street at the start of the week, look to Asia markets to follow in those footsteps. A series of tier-2 data will be out in the region including the likes of the Singapore’s retail sales and China’s FDI data, but the focus goes ahead to the CPI numbers in the US to keep the strength going.

Yesterday: S&P 500 +1.47%; DJIA +0.79%; DAX +0.75%; FTSE +0.37%


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