Traders are gearing up for a cautious start to the first Asian session of 2020 after the Chinese National Bank lowers RRR rates by 50 basis points again. They also look forward to later data on China's manufacturing sector. The Australian dollar and the yen are the currencies that are expected to start the strongest decline.
The activity is expected to intensify with the opening of Asian trading centers after the New Year holidays. Japan remains closed until the end of the week.
The outlook for the markets is for a good start to the new year after the strong performance of stocks in 2019 and government securities. However, one of the risks that outweighs investors is that a lot of good data and optimism are already appreciated by the markets.
In the meantime, stockbrokers are closely monitoring the situation with North Korea. Kim Jong Un says he no longer feels obliged to cancel the missile tests and will soon unveil a new strategic weapon.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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