The American session is coming to an end and the indexes are about to record one of their best daily presentations for weeks. The strong rebound in stock prices followed Powell's comments that the thought of interest rate cuts is not distant for the Federal Reserve.
Given the continuing trade war with China, the trade war in lull with Europe and Japan, and the current escalating trade war with Mexico, it seems that the suspicion that the US economy will withstand the world's opposite winds is being snatched. In order to protect the US economy, it is quite possible for the Fed to reduce interest rates at the end of this year, and more than once.
What can we expect for the Asian session? Growths and markets green, but not for some spectacular market optimism that things get better. From a purely economic point of view, loosening policy leads to a rise in stocks. Something that can follow in Asia as well. Japan is no longer in place with almost no indication of inflation, but China could also reduce interest rates.
BofA Merrill Lynch expects China to cut interest rates twice this year and once in 2020 to keep pace with the US.
Given the expectations for growth in the upcoming Asian trading session, we expect a weak yen and depressed gold given the risk-on sentiment. Later, we expect Australia's GDP and Caixin PMI in the service sector for China. Expectations are the indicator to report a decrease.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.