Asian equities flat

19 October, 2017

Equities across the Asian markets were trading in a tight narrow range on Thursday, ignoring solid Chinese data and the new records on Wall Street, where the Dow Jones Industrial Average breached 23,000. FX markets are also struggling for direction, as traders look for signals from EU politics and who will lead the Federal Reserve.

China’s economic growth meet expectation

China’s GDP expanded 6.8% in the third quarter, slightly below the previous period of 6.9%, but still well above the full-year target of 6.5%. At the beginning of 2017, most of the discussion about the Chinese economy was a “soft vs. hard landing.” However, the economy continues to grow at healthy levels, despite the government shifting the focus on the quality of growth vs. quantity. This gives Xi Jinping more leverage, as he seeks to grab greater power over the next 5 years. In other economic releases, retail sales and industrial production both beat expectations, coming at 10.3% and 6.6% respectively. Meanwhile, investment growth dipped to 18-year low.

Will Rajoy trigger article 155?

Euro traders are waiting to see if Prime Minister Rajoy will trigger article 155, if Catalan President Puigemont does not clarify what he meant in his speech last week. The deadline is 8:00 am GMT, so expect to see some volatility in the Euro as the European trading session kicks off. It is still unclear  how this story will develop but triggering article 155, would likely lead to the declaration of independence and this is will undoubtedly be negative news for the single currency.

U.K. retails sales and EU summit

U.K. retail sales is the only tier one economic release in Europe today. Despite falling real wages, spending remained robust in the previous months. Economists expected retail sales to fall 0.1% last month, but figures from the British Retail Consortium, showed that like-for-like sales grew 1.9% in September, thus expect an upside surprise in today's release. However, this does not necessarily mean Sterling will rally.  Brexit concerns will likely remain the primary driver when EU leaders meet later today. The probability of “no-deal” is increasing, and investors should be prepared for the worst. A hard Brexit scenario will not only drag sterling lower but it will probably take European indices with it.

Dow above 23,000 despite Mnuchin warnings

U.S. Treasury secretary Steve Mnuchin has warned that stocks will fall significantly if Congress doesn’t pass tax reforms. Maybe he’s right. The Dow Jones Industrial Average and S&P 500 rallied more than 25% and 20% respectively, and it’s doubtful that this rally was only based on economic growth and earnings expectations. It seems the odds of tax reforms occurring this year, or in the first quarter of 2018 are 50/50, so risks are broadly symmetrical.  


Source link  
From worst Eve to best day in a decade

Santa arrived a little later than expected this year. At one point investors thought Santa would never show up with markets in red and bears not letting go...

How did Powell upset the markets?

Equity investors didn't like what they heard from Fed Chair Jerome Powell on Wednesday. After trading more than 350 points higher intraday, the Dow...

Equity investors doubting trade truce

The relief rally led by the US-China trade war truce didn't last long. Investors in Asia were seen taking profits from Monday's bounce in equities...


Global markets surge on trade truce hopes

Optimism over the temporary trade truce announced between the United States and China after the G-20 summit in Argentina last weekend has played...

Fed commitment supports Greenback

Reinforced expectations over higher interest rates in the United States after the Federal Reserve provided a consistent narrative that policymakers...

Rupiah manages to withstand Dollar drive

Improved risk appetite and an improved attitude towards global stock markets have helped support a number of different APAC EM currencies...


Equity sell-off resumes in Asia

The steep sell-off in U.S. equity markets suggests October could be the worst month since the global financial crisis of 2008. Seven trillion...

Sea of red across global equity markets

October has been a terrible month for equity investors so far. The S&P 500 and Dow Jones Industrial Average fell into negative territory for the year...

Italian budget, ECB meeting, US GDP

Asian shares were mostly higher this morning as Chinese indexes rallied more than 4% on verbal support from the country's top officials. Although the positive...


In the past 24 hours Bitcoin has lost -0.51% and reached $3655.36602774. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.5351% and is now at $1.1563. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -5.13% and is now at $121.18003724. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2019

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM87%
3HYCMHYCM86%
4FxProFxPro84%
5FIBO GroupFIBO Group83%
6OctaFXOctaFX82%
7HotForexHotForex81%
8FXCMFXCM80%
9XMXM72%
10FP MarketsFP Markets69%
  


Share: