Risk-off mood hovers over Asian markets

21 November, 2019

Risk-off mode continues to cast a cloud over Asian assets, as media reports pour cold water on hopes that a US-China trade deal can be sealed by the end of the year. Asian stocks are retreating, while the Japanese Yen is the only Asian currency that’s gaining against the US Dollar at the time of writing, with USDJPY inching closer to the 108.0 mark. Other safe haven assets such as Gold are also advancing, with Bullion consolidating its place above the $1470 psychological level.

Safe haven assets have been held back from runaway gains by investors’ collective hopes that a US-China trade deal remains possible, albeit delayed. Chinese Vice Premier, Liu He, said he is “cautiously optimistic” about reaching the highly-anticipated phase one deal with the US, although he reportedly was left confused by some of the demands out of Washington. Expect market participants to continue chasing the US-China trade theme, potentially triggering erratic market movements along the way.

Dollar index steadies below 98.0 psychological mark


The Dollar index (DXY) is keeping within the upper-97 range, after the minutes from the October FOMC meeting were released. According to the minutes, Fed officials still noted that downside risks to the US economy remained "significant" and "prominent" in justifying their third 25-basis point cut to US interest rates for the year.

Still, the Fed believes that US interest rates are "well calibrated" at current levels, which supports market expectations that the Fed will stand pat over the coming months, hence the muted reaction in the DXY. Should the incoming domestic economic data or global economic conditions show a marked deterioration, that is likely to prompt the Fed into reassesing its US economic outlook and potentially move US interest rates again.


Source  
To believe or not to believe in virus vaccine hopes?20 May, 2020  

The euphoria that roared across financial market sentiment throughout yesterday and encouraged huge rallies in major U.S stock markets is running thin on flames today...

Gold blasts to new highs but can this joy last?19 May, 2020  

Investors are happy to add risk into portfolios with stocks and oil prices cheering this sentiment but at the same time, gold has reached its highest level...

Will the clock unveil more COVID-19 cases as restrictions ease?12 May, 2020  

Market volatility remains muted, however the crossroads appear to be getting closer where questions will be asked if eased restrictions are contributing...


Sell in May and go away?4 May, 2020  

On Covid-19 related news, states across the US are taking steps to restart the economy by easing stay-at- home orders and allowing non-essential businesses to reopen...

Will markets follow Pied Piper Powell?29 Apr, 2020  

The Dollar is weaker against all G10 and Asian currencies ahead of today's Fed rate decision and the US Q1 GDP announcement. The Dollar index (DXY) has been...

Gold dives despite market turmoil while Dollar surges22 Apr, 2020  

Gold struggled to shine on Tuesday, falling more than 1% as chaos in the oil markets triggered panic selling across the board and forced investors...


Gold Daily: Bullish sentiment prevailing15 Apr, 2020  

The price of Gold, on the D1 time-frame, made a short-lived downward shift until March 16 when a lower bottom was recorded at 1451.13. Buyers found the price attractive...

Markets path dictated by longevity of Covid-1915 Apr, 2020  

Asian stocks and currencies are mixed while US equity futures are pointing south, offering a relatively subdued reaction to more dire warnings about the fate...

COVID-19 pandemic: A bumpy road ahead8 Apr, 2020  

The world has finally seen a glimpse of light at the end of this dark tunnel. The coronavirus outbreak is starting to level off across many countries and cities...