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- Positivism in the United States takes precedence, do we expect it in Asia?
Positivism in the United States takes precedence, do we expect it in Asia?
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Loading...US indices ended the session, against the background of expectations among investors that the US economy will continue to expand. Investors also reflect better GDP data in the country, which rose to 3.3% compared to the expected 3.2%. Leading are the communications and finance sector, with Dow Jones, Goldman Sachs and JP Morgan Chase enjoying the highest growth. After the sharp rise in shares in the US, gold and yen declined. Oil is again traded on a negative territory, the day before the OPEC meeting with Russia, where we expect a decision to extend the crude oil shortening program by the end of 2018.
What to expect during the Asian session.
During the Asian session, we expect the positivism accumulated in the United States to shift to Asia. Taking into account the better US GDP data, we expect stocks of US export-oriented companies to register an increase. Following the growth of the US financial sector and China's decision to reduce banking sector regulation, we can observe a rise in the banking sector both in China and across the continent. During the Asian session we expect economic data from Japan, Australia and New Zealand. At 01:50, industrial production data in Japan will be released in October, with data other than forecast likely to lead to increased volatility in the JPY. Following the rise in stock markets, we expect the yen's downward trend to remain. Later, at 02:00, we expect Australia's New Home Sales and Business Confidence in New Zealand, not expecting data to have a strong impact on NZD and AUD as investors will focus on China's manufacturing PMI at 03:00. Better production data in China will inevitably increase appetite risk and we expect growth in AUD, NZD and Asian stock markets.
Asian markets have completely ignored the threat from North Korea, though that experience was the best that showed the world that the country had a missile capable of reaching a US military base.
Jr Trader Petar Milanov
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