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 - trade volatility

Amid the resilience seen on Wall Street in the face of the latest trade twist between US and China, look to Asia markets to recuperate from the knee-jerk reaction on Monday while monitoring new developments on the trade front.

Wall Street bulls in control

If asked how seriously Wall Street had perceived President Donald Trump’s latest trade threats as more than just positioning, Monday’s market action had reflected that it had probably not been very much. This was as the likes of the comprehensive S&P 500 index rose back from the drop similar to Dany’s Viserion after being shot down by the night king in Game of Thrones, though with trade-sensitive stocks chalking up the losses. A relatively smaller dip was seen on the likes of the Dow and the S&P 500 index at -0.25% and -0.45% respectively, compared to the MSCI Asia Pacific ex-Japan’s -2.00% or the Shanghai Composite’s 5.58% sliding past the 3,000 level.

To a large extent, the recent decline in market breadth had likely invited the anticipation for a short-term pullback, which also lured the bulls in amid the broader market uptrend. Certainly, the fact that talks are still expected to continue, albeit at a later commencement of Thursday, provides some relief from the weekend episode. Moreover, President Donald Trump’s aide treasury secretary Steven Mnuchin’s commented that the US would reconsider duties should talks resume progress reflects the negotiation tactic in play. While it may be hard to make out a clear picture as to where talks are headed amid the noise, Monday’s US market action does suggest that the broad market is still viewing the current market situation of stalled rate rises and positive earnings situation as affirmative for equities.

Still, we have seen volatility picking up in the overnight session whereby the CBOE volatility index, VIX, briefly shot past 18.0 before ending the session lower. This is perhaps a refreshing change for traders looking for some swings, and further repeats should not be ruled out this week amid the uncertainty that still looms ahead over the outcome of this week’s talks, one that previously had investors yearning for a trade deal from.

Asia open

Amid the reversal on Wall Street and news that US-China talks are still set to continue this week, look to a more uplifting mood in Asia markets. Early movers in the region have so far seen gains on the likes of the ASX 200 at 0.49% though the Nikkei 225 returning after the Golden Week had evidently slipped. Look to the RBA meeting today which may offer some surprise for markets while due updates on the trade front will also be of interest. Among the markets, look to performance of the Chinese market after the plunge yesterday. The CSI 300 which slipped to close just above 3,650 remains above the January and February lows but may come under threat once again into the end of the week if hit by both April’s trade figures disappointment and US-China talks go into stalemate.

Yesterday: S&P 500 -0.45%; DJIA -0.25%; DAX -1.01%; FTSE +0.40% (Friday)

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.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

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

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

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

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.