Investor sentiment teeters on a knife-edge

September 3, 2015

It has been a choppy day for equity markets in Asia, with mixed results. China and Hong Kong are offline today, creating thin conditions and leaving investors without a major gauge of overall investor sentiment. Turmoil in Chinese stock markets and concern about its growth prospects have been at the forefront of investor sentiment lately, so markets are somewhat lacking overall direction today.

The Nikkei is benefiting from a weakening of the yen in the last couple of days as risk appetite has slowly returned, but it has only regained a very small percentage of its lost ground. The Nikkei 225 is still over 10% off its recent highs just below 21,000. It’s not surprising that bulls remain cautious, largely because even a small hiccup in this environment could easily spark another feeding frenzy for bears.

In Australia, the ASX 200 is nervously hovering above 5,000 and is down over 1% at the time of writing. Investor sentiment is being soured by dismal local retail sales numbers which show activity at the ground level in the economy slowed 0.1% in July, completely missing an expected 0.4% gain. This latest set of disappointing economic numbers out of Australia is adding to an already gloomy attitude. Yesterday’s soft Q2 GDP numbers have sparked increased speculation about the end of Australia’s recession-free run.

ASX 200 hovers above 5,000

The ASX 200 briefly dipped below 5,000 late last month, before rallying to resistance around 5,300. Now the index is heading back to 5,000, a break of which could send bears into a feeding frenzy. Below 5,000 we’re watching 4,890 and then 4,655, but such a mauling would likely need to be backed-up by a further souring of global risk appetite.

Publication source
FOREX.com information  FOREX.com reviews

September 29, 2016
OPEC blinks
Yesterday decision by OPEC to restrict oil supply has pushed the price of crude higher by some 5%. The move took the markets by surprise, with the divisions between Iran (who are still enjoying their return to global markets)...
September 29, 2016
Gold weighed down by US data
The gold price is down for a second straight day today as investors await a raft of data from the US this week which may decide the question of an interest rate hike...
September 29, 2016
Informal OPEC meeting seizes limelight
Global stocks were chaotic on Tuesday with most equities vibrating between losses and gains as the mixture of anticipation ahead of OPEC - informal meeting and ongoing discussions over the results of the first presidential debate created explosive levels of volatility...

FIBO Group Rating
Vantage FX Rating
HotForex Rating
Fort Financial Services Rating
FXCM Rating
FxPro Rating

OptionTrade Rating
24option Rating
IQ Option Rating
TropicalTrade Rating
OptionRally Rating
Anyoption Rating