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 - trade positivity

Having closed prior to the wave of announcements surrounding further trade talks in Washington, Asia markets are due to for a booster at the start of the week, catching up to the positivity surrounding US-China trade.

The latest surge for markets counts the US-China trade optimism as its primary engine with Asia playing catch-up at the start of the week. Having had both President Donald Trump and President Xi Jinping hailing progress made in talks last week, while further talks are expected this week in Washington, the market had certainly been cheering the signs. Despite the lack of details post meeting, there is a growing sense that a 60-day extension to the March 1 deadline for further tariffs implementation could help to ease through the difficulty in reaching common grounds on contentious issues such as intellectual property and technology transfers. With that, Wall Street charged on into the end of the week, coming through to the upper end of the consolidation zone for the likes of the S&P 500 Index. Alongside items such as the Fed, as listed in our week ahead, this week will remain one to watch for reasons to propel the markets further.

Amid an expectedly quiet start to the week, with US markets away on Monday, look to synchronised gains across the Asia region. The local Singapore market will notably be keeping a close eye on the Budget 2019 announcement for any sweeteners to the economy amid a year where growth is expected to slow and a general election impending. Early morning release finds Singapore’s January coming in on the weak side at -10.1% year-on-year after December’s 8.5% slump.

Notably, Asia’s largest bank, DBS Group Holdings announced their Q4 performance this morning with a record performance for 2018 as expected. Fourth quarter net profit at $1.32 billion is reported to be up 8% from a year ago but marginally misses the consensus. No surprise to find the weakness having been underpinned by trading income segment. More to watch in the earnings call to come for outlook and thereby price reaction.

Levels check

S&P 500: Despite a week of mixed economic data indications, the S&P 500 index rode on the US-China trade hopes to end the week with gains. Prices traversed to the upper end of the earlier consolidation zone of between 2628.5 and 2799.2. Look to the Fed minutes this week and further US-China trade developments for trigger towards 2018 highs. Data docket appears relatively empty this week while Monday is a market holiday.

Alongside US markets, a similar theme cuts across to the likes of the local STI, waiting for breakout at present. Look to the Budget announcement and external leads once again.

US Dollar Index: While the search for safety had faltered into the end of the week with the risk-on mood brought about by the US-China trade developments, the US dollar index remain a hair’s length from breaking out on the upside in the current trend. Fed dovishness will be one to be explored this week from their January minutes, one for the greenback to watch for drag.

EUR/USD: A slew of releases in the eurozone this week ranging the German ZEW survey to February eurozone consumer confidence will all be ones to watch. Bias is towards the downside whether from a data-driven perspective or the technical setup on hand.

Brent Crude: Brent crude prices seen edging up close to a 3-month high, evidently with Saudi Arabia supply and US-China trade hopes powering the surge. The inverse head-and-shoulder pattern seen forming, watching further upsides from here.

Friday: S&P 500 +1.09%; DJIA +1.74%; DAX +1.89%; FTSE +0.55%

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.