Rebound in Asian markets intensifies

14 September, 2018

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having evolved the increase from 14-month lows to 2.8%. Hong Kong’s Heng Seng recovered to 1.5 week’s levels. Previously, we pointed out that the technical factors were in favor of this rebound after the indices had entered the oversold zone. The current rebound can last for a while, as the wave of short speculative positions on the indices of developing countries continues winding down.

A similar movement is observed for the EM currencies. The central bank of Turkey became a hero yesterday, raising the rates by 625 bps to 24%. This action has reduced investors’ fears that the CB loses its policy independence hesitating to tighten after the calls of President Erdogan.

It is also important that the dollar has been losing to the basket of developed countries currencies for the fifth day in a row, declining by 0.9% this week to lows of the beginning of August. The weakening of the US currency increases optimism in the markets of developing countries.

Fibonacci theory suggests the potential for a further rebound about 1.5% on MSCI Asia index that will reflect the correction to 61.8% of the reduction from local highs since August 30. The resolute market’s overcoming of this level and further strengthening above 529 on MSCI against current 520 will be the evidence of the optimism predominance in the markets and increased chances of returning to local highs near 543.

At the same time, the futures on the index S&P500 is only 0.3% lower than the global highs, adding due to the optimism of Asian sites and on the background of weak inflation data. The PPI and CPI indicators unfulfilled expectations and caused a decrease in the chances of two increases in rates by the end of the year from 81% to 75%.


Source link  
Equity market causes investors confusion

As a turbulent December in equity markets draws to a close, there's one thing traders and investors can agree on: these are not usual times, especially...

Global debt exceeded $ 184 trillion

According to the International Monetary Fund (IMF), the global debt has achieved $184 trillion with $86,000 per person, a figure that is twice larger than...

Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...


Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...

Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...


Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...

U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...


In the past 24 hours Bitcoin has gained 0.55% and reached $3668.29231592. 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 -4.5% and is now at $123.262172279. 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: