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 morning update - markets adrift

The silence is deafening, and this vacuum of leads sets Asia markets adrift into Tuesday. Amid the rather empty data docket in Asia, the attention is geared towards the Fed minutes release on Wednesday.

Broadly flat to moderate changes are expected across Asia markets on Tuesday having little new to chew on with North America mostly away at the start of the week. US market’s absence for Presidents’ Day yielded the lack of fresh data after last week’s mixed readings. Meanwhile on the macro end, headlines continue to shape the optimism for a US-China resolution to come. The exhaustion of this key theme would however leave Asia markets to its own means into the Tuesday session as the wait for both the key Fed minutes and Washington trade talks continue.

Notably, this morning saw the release of the Reserve Bank of Australia’s February meeting minutes, emphasizing the relatively dovish stance that gave equities a slight boost. The outlining of ‘significant uncertainties’ and the case for interest rates to move in either direction falls in line with the market’s shift towards an increasing likelihood for a cut to rates. The defection towards a more accommodative stance in line with the Fed had once again been more evident here. Consequently, the ASX 200 saw a slight pop, last seen up 0.34% as with the AUD/USD that softened about 0.2% to $0.7115 when last check. Look to the rest of wage inflation and employment data this week for a big week for Aussie releases.

To recap the market action for the local market, the Straits Times Index edged higher on Monday from the US-China trade hopes but remains in waiting for a breakout. Several notable events including the release of DBS’ earnings and the mildly expansionary budget had broadly fallen in line expectations as the STI traded higher alongside the rest of the Asia region. Once again the emphasis falls on the same macro themes of monetary policy and trade as the STI holds right below the 3278.6 resistance.

On FX, developments had concentrated Europe as political noises emerged again from the UK, though the reactions had been slight. The notable departure by seven MPs from the main opposition Labour Party once again presented the divisiveness of the UK government, all while Prime Minister Theresa May continues to push her Brexit plan in the countdown. That said, within the greater chaos in the form of Brexit, this new development had perhaps present little material differences. GBP/USD can be seen trading flat at around $1.292 through from Monday’s session, likewise with EUR/USD that had kept its head above the $1.130 handle after the greenback softened from last Friday. While Asia markets struggle to find data points to look at in the day, the UK’s employment figures and German ZEW survey would be ones for the pairs to anchor. The EUR/USD pair that had survived the plight of a steeper downturn last week would have the readings to contend with.

Yesterday: S&P 500 +1.08% (Friday); DJIA +1.74% (Friday); DAX -0.01%; FTSE -0.24%

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

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.