Stocks in Asia rose sharply after the stormy Wall Street session yesterday. Purchases in Asia were dictated by US Secretary of State Larry Kudlow's comments that Donald Trump will meet Xi Jinping and discuss a possible outcome of the war. There were also no reductions. The automotive sector throughout Asia is declining, mainly due to Subaru's collapse of nearly -6%, which came as a result of the company's downgraded forecast for the next 6 months. What we need to know is that Subaru is another company in the sector with similar cuts in expectations. Weighing these facts, when building our trading portfolio, it's a good idea to focus on Short Positioning in the automotive sector.
Despite the breakdown in the automotive sector, general moods remain positive. Here are the main moves at the moment:
The FX market was fully following the stock market behavior, with currencies that depended directly on the Chinese economy to grow. JPY, together with CHF, were downgraded. After a short correction of oil, CAD was able to recover, but traders remain cautious as we expect today at 17:00 Bank of Canada's decision on the basic interest rate and at 18:15 the Central Bank press conference.
Here are the major movements of the FX market during the Asian session - 24.10.2018:
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