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.

Breather for Asia markets

A mixed commencement look set to be the case for Asia markets with the region caught between anticipating the prospect of rate cuts from the upcoming Fed meeting and US-China trade tensions.

Talking up the G20 stakes for US-China relations

The macro backdrop was little changed for Wall Street overnight seeing markets waiting for direction from the Federal Open Market Committee (FOMC) meeting next week and weighing the tariffs threats from President Donald Trump. The notable new development had been the raising of stakes for the G20 meeting. President Donald Trump on Tuesday was seen brandishing the trade deal covering terms negotiated earlier in the year which he is demanding China to return to. As Bloomberg reported, White House Acting Chief of Staff Mick Mulvaney had perhaps best described the situation suggesting that the Meixco tariffs conclusion had now emboldened the President. Furthermore, the meeting would be an opportunity to resume talks than to see a deal come through as we have suggested yesterday.

Wall Street broadly concluded little changed seeing the Dow and the S&P 500 index ending near neutral despite a positive start. The S&P 500 index can be seen briefly testing the 2900 level but was sold down once again against the backdrop of trade uncertainty to continue with what could be a rangebound trend until greater clarity can be sought.

Source: IG Charts

US CPI watch

Against the current backdrop, some of the recent questions that were posed are as follows.

  1. Could the markets be pricing in the chance of a Fed rate cut too early?
  2. Can US-China trade tensions further escalate?

The probability of both the abovementioned questions currently point to a yes, but amid the uncertainty particularly with regards to the latter trade item, the Fed may be compelled to move and that will be the big question going into the week ahead.

The US dollar index can be seen repeatedly testing the uptrend support as the market contemplates the prospects of a rate cut. Watch the US CPI data release this week among other updates including retail sales and industrial production. Unless we see a significant surprise from the 0.2% month-on-month consensus, expect the market to largely trudge along awaiting the Fed’s guidance next week. A miss here could be one to increase the expectations for a rate cut and see prices dip past support.

Source: IG Charts

Asia open

Asia markets are due for a breather alongside the US into this midweek trading day with the lack of fresh drivers. While regional markets saw the boost on Tuesday from China’s support towards infrastructure investment, this may be exhausted into Wednesday to find regional markets trading alongside to their own tune. As mentioned above, watch the US CPI data, but prior to which, China’s May CPI and PPI numbers will be released. In particular, look out for the PPI trend after China’s trade data surprised on Monday for any market repercussions.


Yesterday: S&P 500 -0.03%; DJIA -0.05%; DAX +0.92%; FTSE +0.31%

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.